Key Takeaways
- Equity futures for the S&P 500 and Nasdaq posted modest gains Thursday, extending Wednesday’s record-setting performance
- Iran is reviewing a peace proposal from the United States, with an official answer potentially coming Thursday
- Crude oil retreated below the $100-per-barrel threshold as traders anticipate potential reopening of the Strait of Hormuz
- Arm delivered better-than-expected quarterly results, though investor sentiment wavered due to semiconductor supply worries
- Initial jobless claims data showed fewer claims than anticipated, setting the stage for Friday’s employment report
Equity futures in the United States showed upward momentum Thursday morning, positioning the S&P 500 and Nasdaq to continue their climb from the prior day’s all-time highs.
Futures tied to the S&P 500 advanced approximately 0.2%, while Nasdaq 100 contracts gained 0.1%. The Dow Jones Industrial Average futures increased 0.3% during pre-opening hours.
Market participants remained focused on Iran’s anticipated formal reply to Washington’s diplomatic overture. According to CNN’s reporting, Iranian officials are assessing the agreement with a potential announcement expected Thursday.
Earlier this week, President Trump informed journalists that there had been “very good talks over the past 48 hours,” a statement that contributed to Wednesday’s record market performance.
Crude oil markets experienced selling pressure amid optimism surrounding potential access restoration through the Strait of Hormuz. Brent crude contracts declined 2% to reach $99.21 per barrel, while West Texas Intermediate dropped 2.2% to settle at $93.02 per barrel.
The retreat in energy prices helped alleviate inflationary pressures and supported precious metals, with gold extending its recent upward trajectory.
The US dollar weakened 0.2% relative to major trading partners’ currencies. Meanwhile, the benchmark 10-year Treasury note yield edged down 1 basis point to 4.34%.
Technology Earnings Sustain Market Momentum
Arm unveiled impressive quarterly figures following Wednesday’s market close, surpassing Wall Street projections and providing encouraging forward guidance. Despite this, the stock experienced volatile pre-market trading as investors weighed concerns about semiconductor availability.
McDonald’s posted first-quarter results that exceeded expectations, driven by customer demand for budget-friendly menu options. Additional restaurant chains including Shake Shack and Papa John’s were scheduled to announce results before Thursday’s opening bell.
A market strategist at Hargreaves Lansdown observed that approximately 80% of S&P 500 constituents have completed their earnings announcements, revealing widespread profit expansion beyond artificial intelligence-related companies.
“The robustness has been widespread, spanning from the predictable AI-connected sectors such as energy, materials and industrials, extending to consumer businesses, utilities and healthcare,” the strategist commented.
Employment Data Takes Center Stage
Thursday’s Challenger layoff tracker for April revealed technology companies bore the brunt of workforce reductions, with artificial intelligence mentioned as a driving force behind the cuts.
Weekly unemployment benefit applications registered below forecasts, providing modest support to equity markets ahead of Friday’s critical employment data.
Market attention now shifts decisively to Friday’s comprehensive jobs report, which will offer deeper insight into labor market resilience amid emerging signs of consumer sentiment weakness.
Traders maintained a cautious stance Thursday, awaiting concrete developments from Middle Eastern diplomatic channels as morning trading commenced.
The Dow Jones Industrial Average emerged from correction territory during Wednesday’s session, aligning with the S&P 500 and Nasdaq near historical peak levels.
