US pre-open: Stocks set to fall amid ongoing Middle East uncertainty
By Benjamin Chiou
Date: Friday 20 Jun 2025
(Sharecast News) - US stocks are expected to fall on Friday as traders returned to their desks after a national holiday in a cautious mood amid ongoing geopolitical uncertainty.
Futures across the Dow, S&P 500 and Nasdaq were showing losses of 0.2% by 0548 ET.
News that Donald Trump was delaying a decision on whether or not to get involved in the Middle East conflict had helped sentiment across Europe, though another rise in oil prices was weighing on risk appetite on Wall Street.
Meanwhile, US traders were playing catchup after markets were closed for Juneteenth on Thursday, when stocks across Europe and Asia fell.
US stocks finished flat on Wednesday in the aftermath of the Federal Reserve's latest policy meeting, at which it left interest rates unchanged. The Fed adopted a wait-and-see approach in regards to the impact of tariffs on inflation, with chair Jerome Powell admitting that policymakers were uncertain about what's around the corner.
With Friday's economic data calendar looking sparse, the markets' focus was firmly on the Middle East, after Trump announced that he would make a decision on US involvement within two weeks. The White House said the deadline was "based on the fact that there's a substantial chance of negotiations that may or may not take".
"If there's a chance for diplomacy, the president is always going to grab it, but he's not afraid to use strength," said White House press secretary Karoline Leavitt.
"While the immediate prospect of a US intervention in Iran may have diminished, the fact this is reportedly a two-week hiatus means it will remain a live issue for the markets going into next week. A meeting of European ministers with their Iranian counterparts to try and formulate a deal today could be crucial," said AJ Bell investment analyst Dan Coatsworth.
Oil prices were on the rise once again, up 1.2% at $76.04 before the opening bell.
In equity news, Tesla futures were higher ahead of this weekend's highly anticipated launch of its robotaxi service.
Microsoft will continue to be in focus following Wednesday's decision to cut thousands of jobs, primarily across sales departments, with the stock trading lower in pre-market activity.
Home Depot was also tracking lower following Thursday's news that the DIY chain has submitted a bid for building products distributor GMS. GMS futures were up 23% following an 11% jump on Wednesday after GXO proposed buying the company for $5bn.
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