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US stock futures fell as a wave of tech earnings boosted confidence in the AI trade.
Futures attached to the Dow Jones Industrial Average (YM=F) lowered 0.2% while benchmark S&P 500futures (ES=F) dropped 0.4%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) fell 0.8%.
After the closing bell, Snowflake (SNOW), Marvell (MRVL), and HP (HP) reported strong earnings results that showcased AI driving spending on cloud, chips, and computers. Snowflake’s earnings and its announcement of a $6 billion deal with Amazon Web Services stole the after-hours show, sending its stock up more than 30%.
Salesforce (CRM) earnings, meanwhile, also beat Wall Street’s expectations, but a tepid forecast stoked investor concerns about AI disrupting the software business.
In day trading, stocks cautiously rose to records as investors continued to wait for an official update on US-Iran negotiations.
On Thursday, Wall Street will receive the latest reading of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index. The data will indicate whether rising prices are increasing pressure on the central bank to raise interest rates.
Earnings season also continues to draw to a close Thursday, with Costco Wholesale (COST), Dell Technologies (DELL), Dollar Tree (DLTR), Best Buy (BBY), and The Gap (GAP) expected to report their results.
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Oil pulls back from fall as potential Iran peace deal is disrupted by strikes in Hormuz
Bloomberg reports:
Oil advanced, following a drop of more than 5% on Wednesday, as the US and Iran remained at odds over how to reopen the Strait of Hormuz and a report pointed to fresh military strikes in the Islamic Republic.
Brent (BZ=F) rose above $96 a barrel, while West Texas Intermediate (CL=F) was near $90. President Donald Trump said he was “not satisfied” with talks, as the White House denied an Iranian report on a draft agreement that said Tehran and Oman would oversee the waterway.
Crude is still on pace for a second weekly drop on optimism that the warring parties will manage to conclude at least an interim deal, despite the challenges. Sticking points in the negotiations include the nation’s nuclear program and Iran wanting to retain control over Hormuz, which remains subject to a double blockade imposed by both Tehran and Washington.
The US carried out new strikes in Iran against a site that posed a threat to US forces and traffic in the strait, a Reuters reporter said on X, citing a US official. Earlier this week, the US had attacked sites around Hormuz.
