U.S. stock index futures held largely flat Thursday, with the S&P 500 barely budging as rising oil prices and fears of an escalating Middle East conflict kept investors cautious despite some strong corporate earnings. Broadcom slid in premarket trading on a soft revenue forecast, while Snowflake surged on its own guidance.
U.S. stock index futures were muted on Thursday, as higher oil prices and the prospect of an escalating war in the Middle East kept investors on tenterhooks. The moves could add to the gloom that has crept into markets after the latest round of military strikes between the U.S. and Iran, despite some strong corporate results.
S&P 500 E-minis were up 3.75 points, or 0.05%, at 5:42 a.m. ET, while Dow E-minis rose 89 points, or 0.17%, and Nasdaq 100 E-minis slipped 11.75 points, or 0.04%. Brent crude was last up 0.23% after falling earlier in the session.
Goldman Sachs analysts wrote that increasing market adaptability to the conflict will likely continue to moderate the upside to crude prices, even in the case of prolonged disruptions in the Middle East. According to Reuters: "Markets have absorbed a lot of disruption and held up better than many people expected.", said Benjamin Jones, global head of research at Invesco.
Jones added that he expects new disruptions before the year is out, but that higher yields are not among his chief concerns. U.S. Treasury yields eased as a bond market selloff slowed, after high yields had pressured stocks in recent weeks.
Corporate reactions to earnings diverged sharply. Broadcom fell 2.29% in premarket trading after its fourth-quarter revenue forecast fell short of Wall Street's expectations, underscoring the high bar facing companies at the center of the AI buildout. By contrast, Snowflake soared 23.76% after a strong annual revenue forecast.
Investors are now looking ahead to Friday's nonfarm payrolls report, which is expected to draw close scrutiny for clues on the Federal Reserve's interest rate outlook.
Source: Investing.com
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