Stock futures fall slightly as oil prices jump

U.S. stock futures dipped in early morning trading on Wednesday as oil prices gained, and traders digested the latest news on the Ukraine-Russia war.

Dow Jones Industrial Average futures were down 90 points, or 0.3%. S&P 500 futures declined 0.3%, and Nasdaq 100 futures slipped 0.4%.

Ukrainian President Volodymyr Zelenskyy said 100,000 people are trapped in the port city of Mariupol, saying they're under a "complete blockade" and suffering "inhumane conditions." Zelenskyy also called for more pressure on Russia from other countries as the conflict appears to be entering a stalemate.

Oil prices ticked higher on the day, with U.S. crude gaining 1.6% to $111.07 per barrel. Brent crude, the international benchmark, advanced 2% to $117.81.

Wall Street is coming off a strong session in which the Dow jumped more than 250 points and the S&P 500 climbed 1.1%. Those gains came as investors evaluated recent comments from Fed chief Jerome Powell.

Last week, the Fed raised interest rates for the first time since 2018 and forecast a plan to hike rates by a quarter point at each of the remaining six meetings of 2022. But then Powell appeared to up the rhetoric even more on Monday, when he promised to take tough action on inflation.

"The labor market is very strong, and inflation is much too high," the central bank chief told the National Association for Business Economics. "If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so."

The benchmark 10-year U.S. Treasury yield on Tuesday hit its highest level since May 2019 at 2.39%. On Wednesday, the benchmark rate traded around 2.36%.

"Investor attitudes are being bolstered by the fact that the stock market seems little concerned about bond yields surging higher or a Federal Reserve which is getting more hawkish by the day," said Jim Paulsen, chief investment strategist for the Leuthold Group.

The S&P 500 is only 5% off its record and has surpassed both its 50-day and 200-day moving averages.

Still, famed activist investor Carl Icahn said Tuesday an economic downturn could be coming.

"I think there could very well could be a recession or even worse," Icahn, founder and chairman of Icahn Enterprises, said on CNBC's "Closing Bell Overtime" to Scott Wapner.

On the economic front, new homes sales data from February will be released at 10 a.m. on Wednesday.