U.S. stock futures dipped Thursday, giving back some of the sharp gains from the previous session, as traders continue to monitor the Middle East after the U.S. and Iran agreed to a two-week ceasefire.
S&P 500 futures and Nasdaq 100 futures each slipped 0.4%. Futures tied to the Dow Jones Industrial Average fell by 229 points, or around 0.5%.
During Wednesday’s session, the S&P 500 climbed 2.5%, and the Nasdaq Composite popped 2.8%. The Dow surged more than 1,300 points, or 2.9%, for its best day since April 2025 — back when Trump softened his stance on some of his lofty initial tariffs.
On Tuesday night, Trump agreed to pause attacks on Iran. The Middle Eastern conflict has been going on for five weeks and has resulted in the closure of the crucial Strait of Hormuz.
The “double sided” ceasefire, however, was contingent on Iran agreeing to reopening the strait. Tehran agreed to reopen the waterway for the next two weeks as long as all attacks are halted, according to a statement from Iran’s Foreign Minister. Media reports said that Israel has also agreed to the ceasefire.
But later on Wednesday, Iran’s parliamentary speaker Mohammad Bagher Ghalibaf accused the U.S. of already violating the ceasefire agreement. The violations are Israel’s continued attacks on Lebanon, a drone’s entry into Iranian airspace and the denial of the Islamic Republic’s right to enrich uranium, he said.
U.S. military forces will remain deployed in and around Iran until Tehran fully complies with the “real agreement,” President Donald Trump said Wednesday, warning that any breach would trigger a military response larger than anything seen before.
Crude prices rose again on Thursday, putting pressure on equities. West Texas Intermediate futures popped 5% to above $99 per barrel. International Brent crude futures traded 4% higher at above $98 a barrel.
Even as the market rebounded on Wednesday, there are still potential pitfalls around negotiations in the Middle East, according to Eric Johnston, chief equity and macro strategist at Cantor Fitzgerald. He spoke on CNBC’s “Closing Bell: Overtime” Wednesday afternoon.
“I do think, from a short-term perspective, that there are still risks that are still there,” he said. “You have a lot of players involved and, so far, Hormuz is not open. So there are still risks and so I think for the coming couple weeks, we’ll see how this plays out. But yes, broadly we think this is a buying opportunity.”
A couple of catalysts await traders on Thursday morning. First, there’s the 8:30 a.m. reading of the personal consumption expenditure price index, the Federal Reserve’s preferred measurement of inflation. Weekly jobless claims are also due.
Oil rises as U.S.-Iran ceasefire remains fragile
— Fred Imbert
European stocks retreat with U.S.-Iran ceasefire fragility in focus
Europe’s markets hit reverse on Thursday following the previous session’s gains, with the pan-European Stoxx 600 falling almost 0.8%.
Most major bourses and regional sectors were in negative territory, with Germany’s DAX hit hardest, falling about 1.3%, as travel stocks including Lufthansa and Tui gave up Wednesday’s gains.
Oil and gas, utilities and chemicals sectors generated positive returns in early dealmaking.
— Hugh Leask
Asia-Pacific markets close lower after Iran accuses the U.S. of violating ceasefire deal
Asia-Pacific markets fell Thursday, after Iran’s parliamentary speaker charged the U.S. of breaching the terms of their two-week ceasefire agreement.
Japan’s Nikkei 225 fell 0.73% to close at 55,895.32, while the Topix dropped 0.90% to 3,741.47.
South Korea’s Kospi lost 1.61% to finish at 5,778.01, while the small-cap Kosdaq declined 1.27% to 1,076.
Mainland China’s CSI 300 fell 0.64% to 4,566.22 and Hong Kong’s Hang Seng Index was down 0.71% as of its last hour of trade.
India’s Nifty 50 was 0.89% lower, and the 30-stock index BSE Sensex was down 0.96% as of 4:00 a.m. ET. On Wednesday, the country’s central bank warned that the Iran war had raised inflation worries while also flagging risks to economic growth.
Australia’s S&P/ASX 200 managed to buck the wider trend, closing 0.24% higher at 8,973.2.
— Vinay Dwivedi
Asia markets traded lower amid concerns over fragile Iran-U.S. ceasefire deal
Asia-Pacific markets traded lower Thursday, as investors fret over news that Iran’s parliamentary speaker charged the U.S. with breaching the terms of the two-week ceasefire agreement.
On Wednesday, U.S. President Donald Trump announced a “double sided” ceasefire, more than a month into a war with Iran.
The ceasefire was contingent on Iran reopening the Strait of Hormuz. Tehran had said that it would stop “defensive” operations if attacks on the country were halted, according to a statement from Iran’s Foreign Minister. Israel has also agreed to the ceasefire, media reports said.
Iran’s parliamentary speaker, Mohammed Bagher Ghalibaf, subsequently accused the U.S. of violating the ceasefire deal. The violations are the denial of the Islamic Republic’s right to enrich uranium and Israel’s continued attacks on Lebanon, a drone’s entry into Iranian airspace, he said.
South Korea’s Kospi was down 1.41% while the small-cap Kosdaq declined 1.61%. Japan’s Nikkei 225 fell by 0.76%, while the Topix was 0.75% lower. Australia’s S&P/ASX 200 slipped 0.10%.
China’s CSI 300 fell 0.72%, tracking broad losses among other Asian markets. Hong Kong’s Hang Seng Index declined 0.63%.
Oil futures extended gains. The West Texas Intermediate futures for May rose 3.80% to $97.96 per barrel by 9:06 p.m. ET. International benchmark Brent June futures gained 2.88% to $97.48 per barrel.
— Justina Lee
Dow Transports hits new records in Wednesday’s trading
The Dow Jones Transportation Average surged to fresh records Wednesday as stocks jumped on a relief rally.
The Dow Transports gained 3.23% for its best daily performance since August 2025 and its sixth straight winning day. The index hit an intraday all-time high during the session and closed at a record.
The index’s constituents include Delta Air Lines, which gained almost 4% in Wednesday’s trading, and Alaska Air, which posted an 8% gain.
— Darla Mercado and Chris Hayes
Energy was the only sector to end Wednesday lower
The energy sector was the only of the 11 GICS sectors to fall on Wednesday.
Energy stocks ended the day 3.66% lower.
On the other hand, gains were led by industrials, communication services and materials names. All three sectors rose more than 3% on Wednesday.
— Lisa Kailai Han
Constellation Brands trades 1% lower after earnings report
Shares of Constellation Brands were last trading 1% lower on Wednesday evening after the beer producer reported its fourth-quarter results.
In its last quarter, Constellation Brands reported both a top- and bottom-line beat.
But the stock fell after Constellation’s forward guidance failed to meet analysts’ expectations. The company expects its full-year adjusted earnings to come in between $11.20 to $11.90 per share. Analysts polled by LSEG had estimated $12.36 per share.
— Lisa Kailai Han
Stock futures open little changed
Stock futures traded near flat on Wednesday night.
Dow futures were trading slightly below flat shortly after 6 p.m. ET, as were S&P 500 and Nasdaq 100 futures.
— Lisa Kailai Han
