U.S. stock futures fell late Thursday as traders reacted to heightened tensions between the U.S. and Iran, while also preparing for the impending release of April’s jobs report. S&P 500 and Nasdaq 100 futures were both down approximately 0.1%, with futures tied to the Dow Jones Industrial Average dropping 32 points, representing a decrease of less than 0.1%.
In the midst of this market activity, oil prices surged in after-hours trading. West Texas Intermediate crude futures saw a 2% increase as military exchanges occurred between the U.S. and Iran in the strategically vital Strait of Hormuz. Each side has accused the other of initiating hostilities, and the U.S. Central Command stated that American forces engaged in defensive strikes following what they termed “unprovoked Iranian attacks.” A trio of U.S. Navy destroyers was reported to be operating in the region during this incident.
President Donald Trump took to Truth Social to comment on the situation, asserting that while no damage was sustained by the U.S. Navy destroyers, significant harm was inflicted on the Iranian forces. He labeled the strikes as a “love tap” and claimed that a ceasefire remains in effect.
The broader stock market reflected caution as the S&P 500 and Nasdaq Composite retreated from record highs. The S&P 500 fell by 0.38%, and the tech-heavy Nasdaq lost 0.13%. The Dow posted a more pronounced decline, slipping 313.62 points or 0.63%. This downturn coincided with statements from a senior Iranian official who claimed that Iran would not allow the reopening of the Strait of Hormuz under what they described as an “unrealistic plan” proposed by the U.S., emphasizing that Iran expects reparations for damages incurred.
Market participants are also anticipating Friday’s release of key unemployment data. Dow Jones estimates forecast job gains of approximately 55,000 in April, with the jobless rate expected to remain stable at 4.3%.
Despite the recent turmoil, stocks have shown robust performance during the past weeks, bolstered by a strong earnings season. All three major indices are projected to finish the week in positive territory, with the Nasdaq expected to see an increase of 2.8%, the S&P 500 a rise of 1.5%, while the Dow lags behind with a modest week-to-date gain of only 0.2%.
PNC Asset Management’s chief investment strategist, Yung-Yu Ma, expressed optimism regarding future earnings momentum. He noted on CNBC that the positive performance is broad-based and anticipates continued growth, projecting an annual earnings increase of 20% or higher over the next few quarters. As the market outlook remains strong, notable companies such as Toyota Motor, Wendy’s, and Brookfield Asset Management are set to release their earnings before the market opens on Friday.
