Stock Futures Show Little Change Amid Ongoing Middle East Tensions
Stock futures remained largely unchanged Thursday night, as traders shifted their focus to the ongoing conflict in the Middle East and the tenuous cease-fire negotiations between Iran and the United States.
S&P 500 futures and Nasdaq 100 futures were hovering around the flatline. In contrast, Dow Jones Industrial Average futures dipped by 10 points, or under 0.1%.
Late Thursday, reports indicated that Iran’s military launched a missile as President Trump contemplated extending the cease-fire.
In after-hours trading, Dell Technologies saw its shares surge by 38% after it revised its full-year outlook upward and reported positive sales and earnings for the first quarter. Conversely, American Eagle Outfitters experienced an 11% decline in first-quarter sales, with its American Eagle brand seeing a 2% drop in comparable sales.
Thanks to gains in the tech sector, the three major stock indices set new records at Thursday’s close. The S&P 500 climbed by 0.58%, Nasdaq Composite rose by 0.91%, both hitting fresh intraday highs, while the Dow posted a slight increase of 0.05%.
Following the close, stock prices continued to rise after reports emerged that U.S. and Iranian negotiators had tentatively agreed to a 60-day memorandum to extend the cease-fire and discuss Iran’s nuclear program. Regional sources and two U.S. officials confirmed this, although final approval from President Trump is still awaited. A White House official later stated that the terms were “mostly agreed” to end the conflict temporarily.
Just hours later, however, Iranian state media reported that the military had fired a missile at an unspecified target late Thursday.
Kate Moore, chief investment officer at Citi Wealth, noted that the stock market’s climb to new heights may hinge more on robust profit growth than on headlines about Middle Eastern tensions. “I think the rebound we’ve seen since March was largely based on the expectation of resolution. But the timing and extent are really hard to predict,” he shared during a segment on CNBC’s “Closing Bell: Overtime.” “Honestly, it’s the strength of technology earnings that seems to be driving the market upward this earnings season.”
He also remarked, “If the market is fixated on a single issue, it’s not paying full attention to the Iran situation or the effects of rising oil and chemical prices on consumer goods. Instead, it appears to be fully focused on this AI-driven technology surge.”
All three major indices are poised to close the week higher, with the Nasdaq Composite leading the charge, up more than 2%. The S&P 500 climbed over 1%, while the Dow rose by less than 1%.
As the trading week wraps up, all three averages are trending positively. The S&P 500 has gained nearly 5%, the Dow is on track for a 2% increase, and the Nasdaq is outpacing them all with an anticipated 8% gain for May.
Fashion retailer Buckle is set to report its earnings before the market opens on Friday. Traders are also on the lookout for preliminary April wholesale inventory figures, along with the preliminary Chicago PMI for May, which assesses manufacturing and non-manufacturing activity in the Chicago area.
