Wall St futures tepid as Middle East tensions keep investors wary

U.S. stock index futures were muted on Thursday after a batch of mixed corporate earnings failed to spur a rush into equities, keeping attention focused on Middle East tensions during the first week of a historically weak month for returns.

The subdued moves could add to the gloom that has crept into markets after the latest round of military strikes between the U.S. and Iran.

Investors hungry for positive catalysts may now turn to Friday's jobs data, but some have cautioned against placing too much emphasis on the report as Federal Reserve Chair Kevin Warsh has indicated that his priority is controlling inflation.

Odds of a rate hike have seen a sharp increase over the past week, with traders pricing in a 60% chance of a hike in September, according to the CME FedWatch tool.

A prolonged conflict in the Middle East could increase chances of a further hike. Brent crude futures LCOc1 rose 1.68% on Thursday — their fourth consecutive day of gains.