Futures Signal Higher Opening for U.S. Markets
U.S. stock index futures pointed to a firmer start on Thursday, with investors looking to build on the mixed finish from the previous session.
Technology shares, particularly semiconductor companies, were expected to provide early support after helping the Nasdaq recover from steep losses on Wednesday to close slightly higher.
Nasdaq 100 futures climbed around 1%, aided by strong pre-market gains in Micron Technology (NASDAQ:MU) and SanDisk (NASDAQ:SNDK).
Geopolitical Risks Remain a Key Focus
Despite the positive tone in futures trading, investors continued to monitor developments in the Middle East.
U.S. Central Command confirmed that American forces carried out another wave of strikes against Iran on Wednesday, targeting approximately 90 military sites in an effort to weaken Tehran’s ability to threaten commercial shipping through the Strait of Hormuz.
“This is in retribution for yesterday’s bombing of ships by Iran. If it happens again, it will get much worse!” President Donald Trump wrote on Truth Social.
Iran reportedly responded by launching attacks targeting Bahrain, Kuwait and Qatar.
Speaking aboard Air Force One, Trump said Iran wants to “make a deal so badly,” while questioning whether the country is “worthy of making a deal.”
Wednesday’s Session Ends Mixed
Wall Street recovered significantly after a weak start on Wednesday, with the Nasdaq managing to finish in positive territory.
The Dow Jones Industrial Average fell 576.76 points, or 1.1%, to 52,348.39, retreating further from Monday’s record closing high. The S&P 500 lost 21.14 points, or 0.3%, to end at 7,482.71, while the Nasdaq Composite added 51.96 points, or 0.2%, to close at 25,870.65.
The initial sell-off followed President Trump’s announcement that the U.S.-Iran ceasefire was “over.”
“As far as I’m concerned, it’s over,” Trump told reporters at the NATO summit in Ankara, Turkey, describing negotiations with Iran as a “waste of time.”
The president later suggested the U.S. would “very probably” attack Iran “hard again tonight.”
Oil Prices Influence Market Sentiment
Trump’s comments initially sent U.S. crude futures more than 5% higher, reigniting concerns that rising energy prices could fuel inflation and keep interest rates elevated.
However, equities recovered as oil prices retreated from their session highs.
The latest military action followed confirmation from U.S. Central Command that more than 80 Iranian targets had been struck after recent attacks on commercial vessels in the Strait of Hormuz.
Iran’s Revolutionary Guard Corps later claimed responsibility for attacks on U.S. military facilities in Bahrain and Kuwait.
Sector Performance
Housing stocks led the declines, with the Philadelphia Housing Sector Index falling 3.8% as investors reacted to the outlook for higher interest rates.
Gold mining shares also weakened sharply as bullion prices declined, sending the NYSE Arca Gold Bugs Index down 3.6% to its lowest close in more than seven months.
Airlines, banks and commercial real estate stocks also came under pressure.
By contrast, energy companies benefited from higher crude prices, while semiconductor and computer hardware stocks outperformed, helping the Nasdaq recover during the session.