Wall Street poised for lower open as Middle East uncertainty caps rally

Market Overview - U.S. stock index futures declined after a previous relief rally, influenced by renewed doubts regarding Middle East tensions despite President Trump's decision to delay strikes on Iran's power grid [1][3] - The Dow E-minis fell by 184 points (0.4%), S&P 500 E-minis decreased by 25.25 points (0.38%), and Nasdaq 100 E-minis dropped by 83 points (0.34%) [4] Investor Sentiment - Initial investor optimism was sparked by Trump's comments, leading to a more than 1% rally in Wall Street's main indexes, marking the largest one-day increase since February 6 [3] - However, uncertainty regarding the conflict and Iranian officials' denial of negotiations with the U.S. contributed to a reversal of the initial positive market reaction [3][6] Economic Implications - The ongoing conflict has led to a significant increase in oil prices, reviving inflation concerns and complicating the interest rate outlook for central banks [5] - The U.S. Federal Reserve adopted a hawkish tone, projecting only one rate reduction in 2026, with money markets no longer pricing in any rate cuts for the year [5][6] Company Movements - Jefferies (JEF.N) shares rose by 8.2% in premarket trading following reports of a potential takeover by Japan's Sumitomo Mitsui Financial Group [7] - Battalion Oil's shares fell approximately 5% year-on-year after reporting lower revenue in the fourth quarter [8]