Traders on the New York Stock Exchange remained cautious as stock futures showed little movement amid ongoing tensions in the Middle East and an uncertain ceasefire between Iran and the U.S. Late Thursday, futures for the S&P 500 and Nasdaq 100 hovered around the flatline, while the Dow Jones Industrial Average futures saw a modest gain of 24 points, or less than 0.1%.
Tensions escalated when Iranian armed forces reportedly launched missiles, coinciding with President Donald Trump’s consideration of a potential extension to the ceasefire. Despite these developments, shares of Dell Technologies jumped 30% in after-hours trading, buoyed by the company raising its full-year guidance and exceeding expectations for the first quarter. Conversely, American Eagle Outfitters saw an 11% decline after its comparable sales fell 2% during the same period.
On Thursday, all three major stock indices achieved new closing records, thanks in part to a surge in the technology sector. The S&P 500 increased by 0.58% and the Nasdaq Composite by 0.91%, both hitting new intraday all-time highs. The Dow managed a slight gain of 0.05%.
The day saw a market boost following reports from Axios indicating that U.S. and Iranian negotiators had reached an agreement on a 60-day memorandum of understanding aimed at extending the ceasefire and opening discussions on Iran’s nuclear program. This development, however, was contingent on Trump’s final approval, as confirmed by a White House official. Shortly after this announcement, Iranian state media reported missile launches by the country’s armed forces at unidentified targets.
Market analysts, such as Kate Moore, Chief Investment Officer at Citi Wealth, suggested that the rally may be more influenced by strong earnings growth rather than geopolitical tensions. She emphasized that the market’s response since March had stemmed from a belief in a forthcoming resolution, although the specifics remained unpredictable. Moore highlighted the recent surge in technology earnings as a key driver, stating that investors appeared more focused on the robustness of the AI and tech sector than on potential ramifications from the conflict in the Middle East.
As the week progresses toward its conclusion, all three major indices seem poised for gains. The tech-heavy Nasdaq Composite leads with over a 2% increase, while the S&P 500 has risen more than 1%, and the blue-chip Dow is up by less than 1%. May is shaping up to be a strong month, with the S&P 500 up nearly 5%, the Dow achieving a 2% advance, and the Nasdaq poised for an 8% increase.
Traders are anticipating earnings reports from fashion retailer Buckle before Friday’s market open. Additionally, key economic indicators are on the radar, including preliminary wholesale inventories for April and May’s Chicago PMI readings, which assess activity within both the manufacturing and non-manufacturing sectors in the Chicago area.
