US stock futures experienced a notable pullback on Thursday as investors weighed the implications of stalled US-Iran peace talks and assessed the latest earnings reports, particularly from Tesla. The S&P 500 futures dropped 0.4% after hitting record levels in the previous session. Dow Jones Industrial Average futures fell by 0.6%, while the tech-heavy Nasdaq 100 futures were down 0.3%.
Market sentiment deteriorated as crude oil prices surged for a fourth consecutive day amid ongoing tensions between the US and Iran, which had failed to initiate fresh negotiations despite President Trump’s announcement of an indefinite truce. The situation has resulted in significant supply concerns, pushing Brent crude prices above $97 a barrel and briefly surpassing the $100 mark, while West Texas Intermediate crude exceeded $93.
Tesla’s stock saw an initial rise after surpassing earnings expectations but later retracted nearly 3%, following comments from CEO Elon Musk about an upcoming substantial capital expenditure that could impact cash flow. In related market moves, ServiceNow’s shares plunged over 11% in premarket trading despite a positive earnings report, while IBM’s stock fell 7%, driven by fears regarding slowing revenue growth and potential disruptions from AI tools developed by Anthropic.
Investors are now turning their attention to upcoming quarterly results from major companies, including American Express, Blackstone, and American Airlines, along with preliminary S&P Global data on manufacturing activity, which may reveal the conflict’s economic impact.
Honeywell’s stock also faced downward pressure, dropping over 5% after the company announced a second-quarter profit forecast that fell short of Wall Street expectations, attributing part of its revenue decline to the geopolitical climate in the Middle East. The company reported a projected profit of $2.35 to $2.45 per share, below the anticipated $2.56, with sales estimates between $9.4 billion and $9.6 billion, both below consensus expectations.
In contrast, Netflix announced a substantial $25 billion share buyback program, resulting in a more than 1% rise in its shares. This decision follows the firm’s strategic retreat from a $72 billion deal to acquire assets from Warner Bros Discovery. Netflix’s board noted that this authorization is in addition to an earlier buyback program, and the company had around $6.8 billion left from that initiative at the end of March.
Amid a backdrop of high CEO turnover rates, Tim Cook’s announcement to resign as CEO of Apple highlighted broader trends in corporate leadership movements. Data indicates that the first quarter of 2026 saw 77 new CEOs appointed across major indices, marking the highest total in several years. The average tenure of outgoing CEOs in the US has also risen sharply, suggesting a significant evolution in corporate leadership dynamics.
Intel is scheduled to release its Q1 earnings report shortly, with heightened market expectations stemming from the growing importance of CPU demand in AI applications. Following Nvidia’s success in the AI chip market, Intel aims to capitalize on the burgeoning demand for its processors as semi-autonomous AI bots gain traction among data center operators.
Oil prices continue to climb, driven by ongoing tensions in the Strait of Hormuz between the US and Iran. Brent crude traded near $104, while West Texas Intermediate was around $95, with the situation igniting fears of supply disruptions in energy markets.
ServiceNow’s recent earnings report revealed challenges in closing significant government deals in the Middle East due to the conflict, resulting in a 12% drop in its share price. The company anticipates that these deals will eventually close, although uncertainty around regional conflicts remains.
Meanwhile, Texas Instruments reported a surprisingly strong forecast, leading to a surge in its shares during after-hours trading. The company projected revenue of $5 billion to $5.4 billion for the upcoming quarter, significantly exceeding analyst estimates and reflecting strong demand in the industrial sector.
Overall, market dynamics remain heavily influenced by geopolitical developments, earnings results, and shifts in corporate leadership, as investors navigate a complex economic landscape.
