U.S. stock index futures rose on Wednesday, with shares of energy companies getting a boost from a rally in oil after President Donald Trump pulled the United States out of a nuclear deal with Iran.
Oil rose more than 3 percent to hit 2014 high after Trump announced the “highest level” of economic sanctions against Iran after 180 days, casting uncertainty over global oil supplies.
Trump was willing to negotiate a new deal, but Tehran already has ruled that out.
Shares of oil majors Exxon and Chevron were up about 1 percent in premarket trading.
The S&P energy index .SPNY closed up 0.78 percent on Tuesday, as Wall Street was whipsawed by conflicting reports on whether Trump will withdraw or not, ahead of the official announcement.
The U.S. 10-year Treasury yield US10YT=RR rose to a two-week high back above the key 3 percent level. Analysts said expectations for higher interest rates continued to drive bond yields higher, overshadowing any fallout from the U.S. exit from the Iran nuclear deal for now.
Walmart fell 2 percent after it acquired a controlling stake in Indian homegrown e-commerce firm Flipkart for about $16 billion, the U.S. retailer’s biggest foreign investment. At 7:12 a.m. ET, Dow e-minis 1YMc1 were up 128 points, or 0.53 percent. S&P 500 e-minis ESc1 were up 11.75 points, or 0.44 percent and Nasdaq 100 e-minis NQc1 were up 22.75 points, or 0.33 percent.
The Labor Department report, due at 8:30 a.m. ET, will likely show that the producer price index rose 0.2 percent in April after a 0.3 percent rise in March. Consumer prices data is due on Thursday.
Match Group rose 5.6 percent after the Tinder-owner beat analysts’ estimates for quarterly revenue and profit as it attracted more subscribers to its dating apps and websites.