US stocks were poised to build on losses on Thursday as oil prices spiked amid strikes on key Middle East energy hubs, stoking already intense inflation concerns on Wall Street.

Dow Jones Industrial Average futures (YM=F) fell 0.4%, coming off a bruising session that dragged the blue-chip benchmark to its lowest close this year. Contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) declined 0.4% and 0.5%, respectively.

Brent (BZ=F) crude futures surged as much as 10% to as high as $119 a barrel after Iran and Israel exchanged attacks on highly important oil and gas facilities. The escalation in hostilities stoked fears of a more severe fallout from the conflict than foreseen. Gains for US benchmark West Texas Intermediate crude (CL=F) lagged, rising over 2% to above $97.

Markets were already contending with rising inflation forecasts from the Federal Reserve, which dampened expectations for interest-rate cuts. While the Fed signaled one cut could still be on the table this year, bets are policymakers will stand pat β€” especially after hawkish comments from Chair Jerome Powell.

Looking ahead, focus turns to fresh economic data, including weekly jobless claims and the Philadelphia Fed Manufacturing Index, due later Thursday.

On the corporate front, shares of Micron (MU) dropped in premarket as the chipmaker's AI spending plans overshadowed strong earnings. Meanwhile, Alibaba (BABA) stock slid after a 67% plunge in quarterly profit underscored the need for a payoff from its AI investments.

Investors were closely watching Jerome Powell's post-policy meeting press conference for clues about how the war in Iran might change the Federal Reserve's calculus for future interest-rate cuts.

Here's a look at the takeaway from how far the Fed chair was willing to go in his comments

Yahoo Finance's Jake Conley writes:

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Shares in the miner Newmont (NEM) fell 7% before the bell on Thursday as gold (GC=F), silver (SI=F) and copper (HG=F) futures edged lower.

Five Below (FIVE) stock rose 6% during premarket hours today after reporting higher quarterly profit and sales, citing an increase in customer footfall due to the retailer's low-priced offerings.

Align Technology Inc. (ALGN) stock rose 6% before the bell on Thursday after activist investor Elliott said it had built a significant stake in the maker of Invisalign teeth-straightening.

Alibaba (BABA) stock slumped 5% during premarket hours on Thursday as the e-commerce giant's earnings fell while revenue barely grew. Alibaba reported a 2% rise in sales to $41.3 billion for the three months ended December. Net income fell 67%, its worst result since 2024, caused by the company's heavy spending on promotions.

Bloomberg News reports:

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Micron (MU) stock fell 5% before the bell on Thursday following the chipmaker's earnings report. The company's plan to increase capital expenditure left investors feeling nervous. The company's AI-fueled earnings for the quarter beat analysts' estimates.

Reuters reports:

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Oil prices surged after Iran and Israel traded strikes on some of the Middle East’s most important energy facilities, spurring fears of a more severe impact from the almost three-week-old conflict.

Bloomberg reports:

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Reuters reports:

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Bloomberg reports:

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