U.S. Stock Markets are heading for a mixed day of trading on Thursday. S&P futures and Nasdaq futures were down but Dow futures are steady. Russell 2000 futures fell too. Stocks surged to fresh records, dollar and oil prices dropped on Wednesday after a report that the United States and Iran are closing in on an agreement to end their war.
Oil Prices
Oil prices rose about $1 in early trade on Thursday, rebounding from the previous day’s sharp losses, as investors weighed the prospects of a Middle East peace deal succeeding. Brent crude futures were up 88 cents, or 0.9%, at $102.15 a barrel by 0032 GMT. U.S. West Texas Intermediate gained $1.12, or 1.2%, to $96.20 a barrel.
Both benchmarks slumped more than 7 per cent on Wednesday, hitting two-week lows on optimism over a possible end to the Middle East war. They pared losses, however, after U.S. President Donald Trump said it was “too soon” for face-to-face talks with Tehran and a senior Iranian lawmaker said the U.S. proposal was more of a wish list than a reality.
Gold Price
Gold prices held largely steady near a one-week high on Thursday as investors remained on the sidelines awaiting further details on a potential U.S.-Iran peace deal. Spot gold was unchanged at $4,688.16 per ounce after rising about 3 per cent on Wednesday to its highest level since April 27. U.S. gold futures for June delivery rose 0.1 per cent to $4,696.60.
IPO Buzz
Space analytics firm HawkEye 360 has raised $416 million in its U.S. initial public offering, the company said on Wednesday. The Herndon, Virginia-based firm sold 16 million shares priced at $26 apiece in the IPO, giving it a valuation of roughly $2.42 billion. It had targeted a price range of $24 to $26 per share.
After a strong April, IPO activity is expected to pick up in the coming months, with HawkEye 360 and Suja Life set to test investor demand for defense technology and consumer brands, respectively.
Iran-U.S. War
Iran said on Wednesday it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.
Fed officials said on Wednesday the ongoing U.S.-backed war with Iran is raising the risk of a sustained inflation shock, with continued high oil prices and developing concerns about problems with global supply chains.
Key U.S. Data
On the data front, U.S. private payrolls increased more than expected in April, the ADP’s national employment report showed on Wednesday.
Investors now await the monthly U.S. employment report, due on Friday, which will serve as a test of whether the U.S. economy remains resilient enough to keep the Federal Reserve’s monetary policy on hold, or whether a softening labour market could revive the case for rate cuts.
