US pre-open: Futures point to early gains as focus remains on Russia-Ukraine conflict

Wall Street futures had major indices recovering some losses ahead of the bell on Wednesday as Russia's ongoing incursion of neighbouring Ukraine continues to push the price of oil higher.

As of 1220 GMT, Dow Jones futures were up 0.69%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.71% and 0.76% firmer, respectively.

The Dow closed 597.65 points lower on Tuesday, extending losses recorded in the previous session as Russia's invasion of Ukraine progressed.

Market participants were continuing to monitor events in Eastern Europe prior to the open, with reports indicating that Russian forces had penetrated the southern Ukrainian city of Kherson and surrounded nearby Mariupol.

Also in focus were rising oil prices, given that they could potentially drive up inflation, choke the US economy and pose further challenges for the Federal Reserve when it comes to shaping policy. Ahead of the bell, West Texas Intermediate was up 3.94% at $107.48 and Brent crude was 4.07% higher at $109.24. Natural gas futures were up 3.02% at $4.71.

Bond yields were also drawing an amount of investor attention, with the yield on the benchmark 10-year Treasury note trading slightly higher at 1.752%.

On the macro front, mortgage applications fell 0.7% to 463.1 points in the week ended 25 February to the lowest level seen since December of 2019. The fall marked the fourth straight week of declines, according to the Mortgage Bankers Association, as applications to purchase a home fell 1.8%, while those to refinance a home loan went up 0.5%. The average fixed 30-year mortgage rate also continued to rise, advancing nine basis points to 4.15% - the highest since 2019.

Still to come, ADP's February employment change figures will be published at 1315 GMT, while Federal Reserve Bank of St Louis president James Bullard will deliver a speech at 1430 GMT and chairman Jerome Powell will testify before Congress at 1500 GMT.

In the corporate space, Kroger and Dollar Tree will report before the opening bell, while American Eagle Outfitters and Box will publish earnings after the close.