U.S. equity futures ticked higher following record closes on Wall Street, as investors weighed upbeat corporate earnings signals against mounting geopolitical risks and currency volatility. A strong outlook from Apple (NASDAQ:AAPL) helped underpin sentiment, while oil prices maintained weekly gains amid escalating tensions involving Iran.
At the same time, a weaker Japanese yen and a steady flow of corporate earnings kept attention split between macroeconomic developments and company-specific drivers. Most European markets remained closed due to the Labor Day holiday.
Apple Forecast Supports Equity Momentum
Market gains extended as U.S. futures advanced after major indices reached fresh record highs. In Asia, Japan’s Nikkei 225 moved higher, while several regional markets were closed for holidays.
Apple stood out after delivering a stronger-than-expected revenue outlook, though it cautioned that rising memory chip costs and Mac supply constraints could persist for “several months.” Meanwhile, Tokyo Electron also boosted sentiment with an upbeat projection for first-half operating income.
Apple forecast robust sales growth for the current quarter and unveiled a $100 billion share buyback programme. The company expects fiscal third-quarter revenue growth of 14% to 17%, well above market expectations of around 9.5%, supported by continued demand for the iPhone 17 and MacBook Neo.
For the fiscal second quarter, Apple reported revenue of $111.18 billion and earnings per share of $2.01, both exceeding forecasts. iPhone revenue reached $56.99 billion, slightly below expectations due to supply constraints.
Earnings Season Continues to Drive Focus
Earnings announcements remain a key driver for markets, with results expected from Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Estée Lauder (NYSE:EL), and Colgate-Palmolive (NYSE:CL).
Strategists at Barclays noted that “blended Q1 EPS growth is turning up,” while adding that earnings surprises are “much stronger in the US than Europe,” highlighting a widening divergence in regional performance.
Yen Weakness Keeps Currency Markets in Spotlight
In currency markets, the Japanese yen weakened again, with the USD/JPY pair moving back toward the 157 level despite recent intervention efforts by authorities in Tokyo. Officials indicated they remain prepared to step in again, particularly as oil market volatility continues to influence currency movements.
Tim Baker said he is not convinced the pair “will keep falling or even stay here for long.”
“The cross may well be high relative to rates, but it’s actually low relative to a simple model that includes rates, equities and oil.”
Oil Prices Maintain Gains Amid Rising Tensions
Oil prices held onto a second consecutive week of gains as geopolitical tensions intensified. Donald Trump said the United States would continue its naval blockade of Iranian ports, while reports indicated that senior military officials had presented new strategic options regarding Iran, reinforcing the geopolitical risk premium in energy markets.
Iran warned on Thursday that it would respond with “long and painful strikes” against U.S. positions if Washington resumes attacks, while reiterating its claim over the Strait of Hormuz.
Corporate Developments: OpenAI Responds to Growth Concerns
In corporate news, OpenAI dismissed concerns about missing internal targets, with its CFO pointing to strong operational performance and “a vertical wall of demand.”
Separately, S&P Dow Jones Indices launched a consultation that could speed up the inclusion of newly listed large-cap companies into its benchmark indices.