US stock futures experienced a decline in Thursday’s premarket trading following a significant directive from Iran’s supreme leader, stating that the country’s near-weapons-grade uranium will not be sent abroad. This development has raised concerns regarding the progress of peace talks between the US and Iran, leaving investors anxious about potential repercussions on global markets.
Futures for the Dow Jones Industrial Average dipped by 0.2%, mirroring a similar drop in the benchmark S&P 500 futures. Meanwhile, the Nasdaq 100 futures dropped by 0.4%, coming off a day of gains on Wall Street.
In the oil market, prices witnessed a rise, with Brent crude oil surging past $106 a barrel as negotiations between the US and Iran reached an impasse. President Trump, however, expressed optimism regarding a potential resolution, indicating his willingness to wait a few days for Iran to consider the latest US proposal.
Investors were also focused on Nvidia’s recent earnings report, which was released after market close on Wednesday. The company exceeded expectations in both revenue and profit, offering a positive outlook for chip sales. However, some investors remained cautious, hoping for stronger indications of demand. Consequently, Nvidia’s stock traded flat in early hours.
In a notable move, SpaceX filed its S-1 registration statement with the Securities and Exchange Commission, providing the public with insight into its financials ahead of an upcoming investor roadshow scheduled for June.
The earnings season is nearing its end, with notable companies such as Walmart, Ross Stores, Workday, and Zoom Communications expected to release their financial results on Thursday.
In labor market news, initial jobless claims for the week ending May 16 decreased to 209,000, slightly above the previous week’s revised total of 212,000. Economists had anticipated a minor increase to 210,000 claims. The four-week moving average also showed a decline, dropping to 202,500 from the prior week’s 204,000. Continuing claims rose slightly, reaching approximately 1.782 million, just shy of economists’ forecasts.
Excitement surrounding quantum computing stocks surged due to reports that the US government is poised to award $2 billion in grants to various companies in exchange for equity stakes. The Trump administration is reportedly negotiating with nine quantum computing firms, with IBM expected to receive $1 billion. The news prompted significant jumps in stock prices for several involved companies, including a 6% rise in IBM shares and a 15% leap in GlobalFoundries stock.
Walmart’s first-quarter earnings were in line with expectations, showcasing a same-store sales growth of 4.1% in the US, surpassing analysts’ anticipations. The retail giant also reported a robust 26% increase in e-commerce sales. Despite meeting earnings estimates, Walmart’s stock fell by 2% in premarket trading, primarily due to a lukewarm outlook for the upcoming quarter.
After a turbulent session on Wednesday, oil prices began to recover, with Brent crude climbing back towards $106 per barrel. President Trump’s recent statement indicated that the US is nearing a final agreement with Iran. However, conflicting reports about the negotiations have caused volatility in the oil markets, reflecting traders’ concerns over disrupted supplies and potential sanctions outcomes. Market analysts note that even a rapid resolution of the conflict would not lead to a complete recovery of oil flows until several years down the line.
