U.S. Stock Futures Steady Amid Ceasefire Announcement
U.S. stock futures showed minimal movement on Thursday night following President Donald Trump’s announcement that Israel and Lebanon have agreed to extend their ceasefire by three weeks.
The S&P 500 futures were relatively flat, while Nasdaq 100 futures gained 0.4%. On the other hand, futures tied to the Dow Jones Industrial Average decreased by 47 points, about 0.1%.
In after-hours trading, shares of Intel experienced a significant increase, climbing 19%. This surge followed the company’s report of first-quarter earnings that surpassed Wall Street expectations, along with a positive outlook for the current quarter.
Interestingly, both the S&P 500 and Nasdaq Composite reached new intraday highs on Thursday, but ultimately ended the day down by 0.4% and 0.9%, respectively. This marked the Nasdaq’s poorest daily performance in almost a month, while the Dow saw a decline of 180 points, or 0.4%.
Trump’s announcement regarding the ceasefire brought a sense of optimism to the market, stemming from a White House meeting with senior U.S. officials. “The meeting went very well!” he noted in a message.
He also mentioned that “The United States will work together to protect Lebanon from Hezbollah,” referring to militant groups backed by Iran. However, as uncertainty looms over the ceasefire, investors are still looking for signals that a lasting peace deal may be in the works. Tensions in the region have intensified into a maritime standoff near the Strait of Hormuz, with both countries reportedly seizing commercial vessels. Trump even stated he had given orders to the U.S. Navy to “shoot down any ships” laying mines in the area.
Thursday’s drop from record highs demonstrated how news from the Middle East can impact markets, despite traders trying to focus on corporate earnings instead. While software stocks faced declines, semiconductor stocks rose, with the iShares Semiconductor ETF (SOXX) achieving its 17th consecutive positive session.
Cameron Dawson, chief investment officer at NewEdge Wealth, commented that the market’s breadth is becoming increasingly narrower. He noted that while the ‘Magnificent Seven’ stocks were previously thriving, now only semiconductors seem to be performing well. He remarked, “Semiconductors, the world’s most cyclical sector, are experiencing hypernormal growth, projecting 100% earnings growth this year. The big question is how the market will digest this growth and whether it’s sustainable.”
Additionally, companies like Procter & Gamble, South Norfolk, Charter Communications, and S.L.B. are set to report earnings before the market opens on Friday. Traders will also keep an eye on the final figures for the Michigan Sentiment Index for April.
