US pre-open: Wall Street futures pause following record‑setting session

(Sharecast News) - Wall Street futures were mixed ahead of the bell on Wednesday as Middle East developments remained in focus after major indices eked out fresh record closes yesterday.

As of 1300 BST, Dow Jones and S&P 500 futures were down 0.29% and 0.09%, respectively, while Nasdaq-100 futures were 0.18% firmer.

The Dow closed 228.91 points higher on Tuesday, extending gains recorded in the previous session.

Futures were broadly flat prior to the open after geopolitical tensions in the Middle East flared again, after Kuwait's army said late on Tuesday that its air‑defence systems were intercepting "hostile targets".

Hours later, US Central Command confirmed that American forces had shot down Iranian ballistic missiles and drones and carried out "self‑defence strikes" on Qeshm Island in response to attempted attacks across the region. Donald Trump also claimed that Tehran had agreed to not have nuclear weapons, but added "they can change their mind".

On the macro front, US mortgage applications fell for a third consecutive week at the end of May, according to the Mortgage Bankers Association, with overall volumes down 2.5%. The decline followed an 8.5% drop in the prior week and came despite a slight easing in benchmark mortgage rates, which tracked lower long‑term Treasury yields as energy prices pulled back from recent highs. Applications to refinance a mortgage, which are typically more sensitive to short‑term interest rate changes, slipped 2.3% after an 18% plunge in the previous period, while applications to purchases a home were also weaker, easing 2.9% on the week.

Still to come, May ADP employment change figures will be released at 1315 BST, S&P Global's May composite and services PMIs will be published at 1445 BST, while the Institute for Supply Management's services PMI will follow at 1500 BST, as will April factory orders data.

In the corporate space, retailer Macy's posted its strongest first quarter growth in four years, leading the firm to raise its FY guidance despite ongoing consumer fears. Macy's said like-for-like sales grew 3% overall during Q1 and 1.6% at its namesake banner. At Bloomingdale's, comparable sales grew 10.2%.

Broadcom and CrowdStrike will report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com