US pre-open: Futures point to losses after US air strike on Iranian general

US futures were pointing to some heavy losses at the open on Friday after the White House confirmed that an airstrike had killed a top Iranian commander.

As of 1200 GMT, Dow futures were down 1.17%, while S&P 500 and Nasdaq-100 futures were 1.29% and 1.45% lower, respectively.

The Dow closed 330.36 points firmer on Thursday as sentiment on the first day of 2020 was boosted thanks to some encouraging news out of China.

However, the US revealed late on Thursday that it had killed top Iranian commander General Qasem Soleimani in an airstrike on Baghdad, whom some observers described as the second most powerful figure in the Tehran, with his death now raising concerns regarding a potential retaliation by Iranian forces.

Oil prices rose almost 4% following the news.

CMC Markets analyst David Madden said: "Relations between the US and Iran have been tense in recent months, and the relationship is now under further pressure.

"Traders are fearful of a retaliation from Iran, hence why stocks are lower this morning. Equity markets enjoyed a nice rally yesterday on the back of the news the Chinese central bank will lower the reserve requirement ratio, so the Iranian issue has provided dealers with a good excuse to trim their exposure to stocks."

On the data front, ISM manufacturing and construction spending numbers will be published at 1500 GMT.

The latest set of Fed minutes will follow at 1900 GMT.

No major corporate news was slated for release on Friday.