U.S. stock futures fell sharply on Wednesday following news reports of an explosion in Iran that state television there attributed to a missile fired by an unknown aircraft.
"This explosion basically sent chills down the spines of futures traders," said Phil Flynn, senior market analyst at Alaron Trading Corp in Chicago. "Oil prices reacted immediately and rallied up to the highs and this caused a corresponding drop in stock prices."
S&P 500 futures (SPH5: Quote, Profile, Research) were down 7 points, below fair value accounting for interest rates, dividends and time to expiration on the contract.
Dow Jones industrial index futures (DJH5: Quote, Profile, Research) were down 48 points, while Nasdaq 100 (NDH5: Quote, Profile, Research) futures fell 8 points.
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