U.S. equity futures traded in mixed territory on Thursday as investors balanced renewed diplomatic developments in the Middle East against corporate news from major technology companies and the upcoming public debut of SpaceX.
By 03:32 ET, Dow Jones futures were up 122 points, or 0.2%, while S&P 500 futures slipped 0.2% and Nasdaq 100 futures declined 0.3%.
Wall Street ended Wednesday lower after renewed military exchanges between the United States and Iran reduced expectations of a swift resolution to the conflict, which has now persisted for more than three months. Investors remain concerned that elevated energy prices could keep inflation pressures alive, potentially reducing the likelihood of interest-rate cuts from the Federal Reserve this year.
Despite broader market weakness, semiconductor shares continued to attract interest, reflecting ongoing investor enthusiasm surrounding artificial intelligence. Recent data on private-sector employment and services activity suggested that the U.S. economy remains resilient, although analysts noted growing pressure on corporate margins and signs of softer consumer conditions.
Israel-Lebanon Ceasefire Revives Diplomatic Hopes
Markets were closely monitoring developments in the Middle East after Israel and Lebanon agreed to renew a fragile ceasefire arrangement.
The agreement has renewed optimism that broader negotiations involving the United States and Iran could eventually produce a diplomatic breakthrough. Progress in U.S.-Iran talks has been linked to stability in Lebanon, where Israeli forces supported by Washington have been engaged in conflict with Hezbollah fighters backed by Tehran.
Following a fourth round of U.S.-mediated negotiations, both Israel and Lebanon stated that the ceasefire would be “contingent on a complete cessation of Hezbollah fire and the evacuation of all Hezbollah operatives” from territory south of the Litani River.
“These steps will enable progress towards a comprehensive peace and security agreement,” according to a joint statement.
Hezbollah did not participate in the negotiations.
On Wednesday, U.S. President Donald Trump suggested that meaningful progress in discussions with Iran could be achieved as early as this weekend. Iran’s foreign minister also indicated that communication channels between Tehran and Washington remain open, despite earlier reports suggesting indirect contacts had been suspended.
Political pressure is also increasing within the United States. The House of Representatives approved a resolution aimed at limiting the president’s ability to continue military operations without further congressional approval. The proposal must still clear the Senate and overcome any potential presidential veto before becoming law.
Oil Prices Ease as Markets Eye Strait of Hormuz Reopening
Energy markets responded positively to the ceasefire announcement.
Brent crude, the global benchmark for oil prices, fell 1.0% to $96.84 per barrel as traders speculated that a future agreement between Washington and Tehran could pave the way for the reopening of the Strait of Hormuz.
Government bond yields in both the United States and the eurozone also moved lower, reflecting hopes that improved regional stability could help ease upward pressure on energy costs and inflation.
The Strait of Hormuz, located off Iran’s southern coastline, is one of the world’s most important energy shipping routes. Before the conflict erupted in late February, roughly one-fifth of global oil supplies passed through the waterway. Its effective closure has contributed to sharp increases in oil and liquefied natural gas prices.
Against this backdrop, markets continue to assess whether both the Federal Reserve and the European Central Bank may need to maintain a tighter monetary policy stance to contain inflationary pressures.
Broadcom Falls Despite Strong AI-Driven Revenue Growth
Artificial intelligence remained a key focus for investors following Broadcom’s (NASDAQ:AVGO) latest earnings release.
The semiconductor group reported a 48% increase in second-quarter revenue, driven by continued strength in demand for AI-related chips and infrastructure. Nevertheless, the stock declined sharply in after-hours trading after management’s outlook fell short of some investors’ expectations.
Broadcom shares had already gained approximately 38% since the beginning of the year.
The company, which works with major technology groups including Meta and OpenAI to develop custom AI accelerators, maintained its longer-term forecast for AI semiconductor revenue to exceed $100 billion by 2027.
Chief Executive Hock Tan said AI semiconductor revenue is expected to reach $16 billion in the current quarter, more than three times the level recorded a year earlier.
SpaceX Sets IPO Price Ahead of Historic Market Debut
SpaceX (NASDAQ:SPCX) has unveiled the pricing details of its long-awaited initial public offering, setting the offer price at $135 per share ahead of its planned stock market debut next week.
According to an updated regulatory filing, the company intends to sell 555.5 million shares at the fixed price, potentially raising approximately $75 billion. The transaction would value SpaceX at around $1.75 trillion, making it one of the most valuable publicly traded companies in the United States and the largest IPO ever completed.
The decision to disclose pricing before the traditional investor roadshow process is highly unusual. Most major U.S. IPOs determine their final offer price only after gauging institutional demand.
The move highlights Elon Musk’s willingness to challenge established Wall Street practices and could reshape expectations for future large-scale listings.
The offering will provide public investors with direct exposure to SpaceX’s ambitions in space exploration, satellite communications and artificial intelligence, businesses that have become central to Musk’s expanding corporate empire.