S&P 500 Futures Surge Ahead of Fed Decision—What It Means for Today’s Market Open

New York, June 13 (Reuters) – S&P 500 futures slid more than 1 % in Friday’s pre-market trade as Israel’s overnight strikes on Iranian nuclear facilities jolted global risk appetite, sent oil prices soaring above $88 a barrel and pushed investors toward defensive assets. Key points • At 04:32 a.m. ET, E-mini S&P 500 (ES=F) contracts were down 70.5 points (-1.17 %), while Dow futures shed 505 points and Nasdaq 100 futures lost 1.41 %. • West Texas Intermediate crude spiked more than 6 %, igniting a bid for energy majors Chevron and Exxon in pre-market action. • Airline stocks retreated 3-5 % on concerns higher jet-fuel costs will squeeze margins. • Defense names Lockheed Martin, RTX and Northrop Grumman gained 4-6 % as traders priced in rising geopolitical risk. • The pullback leaves the S&P 500 cash index just 1.8 % shy of its all-time peak set in March. Middle-East shockwave Israel said the strikes were aimed at preventing Tehran from obtaining an atomic weapon, while Iran vowed a “harsh response.” The clash comes days before a sixth round of U.S.–Iran nuclear talks and threatens to disrupt crude supply from the world’s most important oil corridor. Risk-off rotation Futures positioning shows investors moving out of cyclical and small-cap exposure—Russell 2000 futures dropped 1.6 %—and into energy and defense. Treasury yields slipped as markets sought safety, but the 10-year note remains above 4.50 % ahead of next week’s Federal Reserve decision. Fed in focus Traders still expect the Fed to hold rates steady on Wednesday, yet the futures market trimmed September rate-cut odds to 42 % from 55 % before the strikes. A hotter-than-expected May CPI print earlier this week already had policymakers on guard over sticky services inflation. What to watch today • 8:30 a.m. ET – Import/Export prices • 10:00 a.m. ET – Preliminary June University of Michigan consumer-sentiment survey • All day – G-7 finance ministers’ meeting in Verona Technical snapshot The E-mini S&P 500 contract is testing its 50-day moving average near 5,930. A decisive break could open the door to the 100-day average at 5,780, while immediate resistance sits at Thursday’s settlement around 6,045. Bottom line Elevated oil, geopolitical tensions and a nervy countdown to the Fed are converging to pressure S&P 500 futures. How quickly the Middle-East flare-up cools—and whether Fed Chair Jerome Powell signals patience or urgency on rates—will set the tone for U.S. equities into the second half of June.