US stock futures experienced declines as optimism surrounding earnings in the technology sector fueled confidence in artificial intelligence (AI) investments. Futures linked to the Dow Jones Industrial Average fell by 0.2%, while those for the benchmark S&P 500 dropped 0.4%. The tech-centric Nasdaq 100 futures saw a more significant decrease, down 0.8%.
In after-hours trading, companies such as Snowflake, Marvell, and HP reported strong earnings, highlighting AI as a key driver for increased spending in cloud computing, semiconductor technology, and personal computers. Snowflake’s impressive earnings announcement, which included a substantial $6 billion deal with Amazon Web Services, captured investor attention, sending its stock soaring by over 30%.
Salesforce, another major player in the tech sector, also exceeded Wall Street expectations with its earnings report. However, a cautious forecast prompted concerns over potential disruptions from AI within the software industry.
During the day, stocks showed modest gains, reaching record highs, as investors awaited developments on ongoing US-Iran negotiations. This anticipation precedes a critical update expected Thursday; the Federal Reserve will release the latest data on the Personal Consumption Expenditures index, a key measure of inflation that could influence monetary policy decisions, including potential interest rate hikes.
Earnings reports continued to flood in, with several notable companies scheduled to announce their results on Thursday. Among them are retail giants such as Costco Wholesale, Dell Technologies, Dollar Tree, Best Buy, and The Gap.
In the energy market, oil prices rebounded after a significant drop of over 5% on Wednesday. Reports indicated that tensions between the US and Iran remain unresolved as talks concerning the reopening of the Strait of Hormuz have stalled, exacerbated by new military strikes within Iran. Brent crude traded above $96 a barrel, while West Texas Intermediate hovered near $90.
President Donald Trump expressed dissatisfaction with the current negotiations, as the White House refuted claims from Iran regarding a draft agreement involving oversight of the strategic waterway. Despite the ongoing challenges, there is still cautious optimism that the parties may reach at least a preliminary agreement. Disagreements persist, particularly over Iran’s nuclear ambitions and its request to maintain control over the strait, which is currently affected by a dual blockade from Tehran and Washington. Reports indicated that the US conducted airstrikes in Iran aimed at sites considered threats to American forces and shipping in the Strait of Hormuz.
