- Trump said Tuesday that the U.S. would be walking away from the Iran deal and that sanctions on the Middle Eastern country would be reinstated.
- Mortgage applications are due out at 7 a.m. ET, followed by producer price index (PPI) data at 8:30 a.m. ET and wholesale trade figures at 10 a.m. ET.
U.S. stock index futures ticked higher ahead of Wednesday’s open, as markets reacted to Donald Trump’s decision to pull out of the nuclear deal with Iran.
Around 5:30 a.m. ET, Dow futures rose 128 points, indicating a higher open of 131.79 points. The Nasdaq and the S&P 500 futures indicated a relatively positive start to the session for their respective markets.
The moves in pre-market trade came as global markets remained jittery following news that the U.S. would be exiting the 2015 nuclear accord with Iran.
Trump said Tuesday that the U.S. would be walking away from the Iran deal and that sanctions on the Middle Eastern country would be reinstated. In the run-up to the 2016 presidential election, this was a campaign promise that Trump had pledged.
“We will be instituting the highest level of economic sanction. Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States,” the president said.
Following the announcement, countries around the world reacted differently. While some nations in the Middle East commended the move made, U.S. allies in Europe did not. The president of Iran, Hassan Rouhani, said that his country would continue to commit to the nuclear deal, according to Reuters.
Oil prices rallied on the back of the news, with U.S. crude and Brent rising more than 2.5 percent Wednesday, prior to the opening bell on Wall Street. At 5:15 a.m. ET, U.S. crude rose above $71, while Brent topped $77 per barrel.
In the bond market, the 10-year Treasury yield reclaimed its position above the 3 percent mark during Wednesday’s morning trade, a level that recently put markets on edge.
Mortgage applications are due out at 7 a.m. ET, followed by producer price index (PPI) data at 8:30 a.m. ET and wholesale trade figures at 10 a.m. ET.