Trump stated in a post on Truth Social that Iran has been completely defeated and that the country is all talk and no action.
- According to a CBS News report, the U.S. struck 20 targets inside Iran in retaliation for the Iranians downing an Apache helicopter over the Strait of Hormuz.
- Trump said that the strikes were in response to Iran downing a U.S. Apache helicopter earlier this week.
- In another post, Trump touted the U.S.’s naval blockade of Iran, calling it a “steel wall.”
U.S. stock futures tumbled in Wednesday’s pre-market trade after President Donald Trump threatened that Iran would have to bear the consequences of negotiations taking too long.
Trump stated in a post on Truth Social that Iran has been completely defeated and that the country is all talk and no action.
“They’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!” he said.
Dow Jones Industrial Average (DJIA) futures fell nearly 470 points before recouping some of the losses. The S&P 500 futures were down about 1%, while the Nasdaq Composite futures declined nearly 1.6%.
US Strikes 20 Targets Inside Iran In Retaliation, Says Report
According to a CBS News report, the U.S. struck 20 targets inside Iran in retaliation for the Iranians downing an Apache helicopter over the Strait of Hormuz.
The targets included Iranian ground control stations, radar sites, and air defenses, according to the report.
“This is a response to what they did with our helicopter last night, and I believe the response should be very strong, very powerful, and that’s what this one is,” Trump said, according to ABC News.
In another post on Truth Social, Trump touted the U.S.’s naval blockade of Iran, calling it a “steel wall.” “Iran is doing zero business, not paying their military, or any of their bills, and quickly becoming a failed nation! Lots of oil is getting out,” he added.
Investors Await CPI Data
Trump’s latest threat to Iran comes ahead of the release of the Consumer Price Index (CPI) for May at 8:30 a.m. ET.
Wall Street expects CPI to rise 0.5% in May on a seasonally adjusted basis, after a 0.6% increase in April, according to a Dow Jones estimate compiled by MarketWatch.
The annual inflation rate is expected to be 4.2% before seasonal adjustment, marking the highest level since April 2023, according to data from the Bureau of Labor Statistics (BLS).
Meanwhile, chip stocks fell across the board, with Nvidia Corp. (NVDA) shares down more than 2% pre-market. Shares of Intel Corp. (INTC), Micron Technology Inc. (MU), Advanced Micro Devices Inc. (AMD), and ARM Holdings (ARM) fell between 4% and 5%.
The iShares Semiconductor ETF (SOXX) was down about 3% at the time of writing.
Crude Oil Prices Rise
Meanwhile, crude oil prices rose on Wednesday, with the U.S. West Texas Intermediate (WTI) crude futures maturing in July rising 2.04% to hover around $90 per barrel. Brent crude futures maturing in August were up 1.76%, hovering at $93.06 per barrel.
The United States Oil Fund ETF (USO) and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) were up nearly 2% at the time of writing.
At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.89%; the Invesco QQQ Trust ETF (QQQ) fell 1.42%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.77%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bullish’ territory.
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