Wall Street set to fall as Russia-Ukraine tensions escalate
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Walmart gains after raising annual sales, profit forecast
Defense stocks edge higher
Super Micro surges after auditor appointment
Futures down: Dow 0.67%, S&P 500 0.53%, Nasdaq 0.54%
Updates before market open
By Lisa Pauline Mattackal and Purvi Agarwal
Nov 19 (Reuters) -U.S. stock index futures pointed to a lower open on Tuesday, as concerns over escalating tensions between Russia and Ukraine dented risk appetite globally, with investors rushing to safe-haven assets.
Russian President Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, and Moscow said Ukraine had struck deep inside Russia with U.S.-made ATACMS missiles.
Ukraine launched an attack on the Russian Bryansk region overnight with six U.S.-made long-range missiles, Russian news agencies reported on Tuesday, citing the Russian Defence Ministry.
"All around the world, we're nervous because Putin has said if this escalates, he could match the escalation. Markets are reflecting this nervousness," said Kim Forrest, chief investment officer, Bokeh Capital Partners.
The CBOE Volatility index .VIX briefly jumped to its highest at 17.88, since the Nov. 5 U.S. election, before slightly easing to 16.61.
The resurgence of geopolitical tensions added jitters during a crucial week for Wall Street, as investors await key cabinet appointments for President-elect Donald Trump's administration, assess the possible path for interest rate cuts and await quarterly earnings from AI giant Nvidia NVDA.O.
Nvidia, which reports third-quarter results on Wednesday, gained 0.8% in premarket trading. Given its weight in the main indexes, its results could offer equities support in a volatile market.
"The combination of Russia ratcheting up its war rhetoric and uncertainty about how the incoming U.S. presidential administration will respond, is a recipe for stock market volatility," said Gaurav Mallik, chief investment officer, Pallas Capital Advisors.
Investors rushed to safe-haven assets including government bonds, gold XAU= and the Japanese yen JPY=.
Gold miners rose as prices of the yellow metal gained. Barrick Gold GOLD.K gained 1.9% and Harmony Gold Mining HMY.N rose 4.9%.
Futures tracking the small-cap Russell 2000 RTYcv1 dropped 0.8%.
But most investors have maintained fairly upbeat forecasts for equities - both Goldman Sachs and Morgan Stanley have forecast the S&P 500 would reach 6,500 by the end of 2025.
The Nasdaq .IXIC and the S&P 500 .SPX closed higher on Monday.
At 08:41 a.m., Dow E-minis 1YMcv1 were down 290 points, or 0.67%, S&P 500 E-minis EScv1 were down 31.5 points, or 0.53% and Nasdaq 100 E-minis NQcv1 were down 111.5 points, or 0.54%.
Retail giant Walmart WMT.N gained 3.2% after it raised its annual sales and profit forecasts for the third consecutive time, a sign that it may be gaining market share ahead of the holiday season.
Some U.S. defense companies gained in premarket trading, with RTX Corp RTX.N and Lockheed Martin LMT.N up marginally.
AI server maker Super Micro Computer SMCI.O leapt 25.1% after the company named BDO USA as its auditor and said it has submitted a plan to the Nasdaq to avoid delisting.
Home improvement retailer Lowe's LOW.N lost 2.2% despite forecasting a slower-than-expected drop in annual comparable sales.
Incyte INCY.O fell 10.9% after the drugmaker paused enrollment in an ongoing early-phase study on its skin condition treatment.
Kansas Fed president Jeffrey Schmid is scheduled to speak later in the day.
Walmart earnings https://reut.rs/48VOnCg
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli
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