U.S. stock futures fell sharply in premarket trading after U.S. President Donald Trump told the NATO summit in Turkey that the ceasefire with Iran is “over.”

Oil prices are surging, with crude up roughly 5% to about $74 per barrel after the U.S. started a “series of powerful strikes” against Iran overnight, retaliating for attacks against three commercial vessels traveling in the Strait of Hormuz, U.S. Central Command said.

This has stocks down sharply, yields moving higher and CBOE’s VIX measure of volatility up 10%. Investor focus will be on the rise in geopolitical tensions, oil prices and this afternoon’s FOMC minutes release.

Snapshot (as of 7:45 AM ET)

• Oil (/CL) – U.S. oil futures are up nearly 5% to $73.93 per barrel
• Gold (/GC) – Gold is down 2.05% to $4,072.80 per ounce
• Bitcoin (/BTC) – The cryptocurrency futures are down 2.38% to 62,420
• VIX – The CBOE Volatility Index has climbed 10% to 17.72
• U.S. Dollar ($DXY) – The dollar index futures are up 0.15% to 101.170

Biggest Premarket Movers (as of 7:45 AM ET)

Advancers:

• LyondellBasell Industries (LYB) 3.48%
• Dow Inc. (DOW) 3.00%
• CF Industries Holdings (CF) 3.00%
• APA Corp. (APA) 2.94%
• Occidental Petroleum (OXY) 2.75%

Decliners:

• Sandisk (SNDK) -5.42%
• Micron Technology (MU) -4.62%
• Western Digital (WDC) -4.16%
• Ciena (CIEN) -3.72%
• Robinhood Markets (HOOD) -3.69%

Economic Data (ET)

• 7:00 AM: MBA Mortgage Applications
• 10:30 AM: Oil Inventories
• 1:00 PM: 10-Year Note Auction
• 2:00 PM: FOMC Minutes
• 3:00 PM: Consumer Credit

Notable Earnings

• Premarket: HELE
• Postmarket: AZZ, LEVI, PSMT
• Premarket Thursday: PEP, SMPL
• Postmarket Thursday: WDFC

Upgrades/Downgrades

• Goldman Sachs and Raymond James upgrade Dollar Tree (DLTR), to Neutral from Sell, and from Outperform to Market Perform, respectively
• Evercore ISI upgrades Occidental Petroleum (OXY) to Outperform from In Line
• Goldman Sachs upgrades RH (RH) to Neutral from Sell
• BofA downgrades Truist Financial (TFC) to Neutral from Buy
• Morgan Stanley downgrades Alcoa (AA) to Equal Weight from Overweight
• Barclays downgrades HCA Healthcare (HCA) to Equal Weight from Overweight and Universal Health Services (UHS) to Equal Weight from Overweight

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