Stock futures fell on Thursday, weighed by a spike in crude prices and Treasury yields, while traders weighed whether Nvidia‘s earnings report met the high bar set for the artificial intelligence titan.
Futures tied to the S&P 500 declined 0.4%, while Nasdaq 100 futures lost 0.6%. Dow Jones Industrial Average futures dropped 167 points, or 0.3%.
Crude prices jumped after Reuters reported, citing sources, that Iran’s supreme leader issued a directive to keep enriched uranium within the country — further complicating the outlook to a resolution to the U.S.-Iran war. West Texas Intermediate futures were up 2.9% at $101.04 per barrel. Brent crude popped 2.3% $107.36.
The oil spike was followed with a move higher in Treasury yields, as traders grow fearful or rising inflation. The benchmark 10-year Treasury note yield climbed 5 basis points to 4.615%. The 30-year bond yield advanced 3 basis points to 3.665%.
Stocks rallied on Wednesday, snapping a three-day losing streak for the S&P 500, as oil prices and bond yields retreated. Investor spirits were lifted after President Donald Trump said the administration was in the “final stages” of negotiations with Iran, according to a pool report.
“The market is coming off a really strong earnings season that delivered positive revisions to earnings expectations, but concerns around inflation and demand destruction in the economy are proving persistent,” said Scott Helfstein, head of investment strategy at Global X ETFs. “That can be hard to look through, but there are still a lot of positive trends that can help propel the economy and markets.”
Traders on Thursday also assessed Nvidia’s latest quarterly report. Nvidia breezed past Wall Street’s expectations for earnings and guidance, in addition to announcing a hike in its quarterly cash dividend to 25 cents. But investors have come to expect the chipmaker to beat estimates and raise its outlook amid the AI boom.
Nvidia shares were last down slightly.
Iran supreme leader directs country to keep enriched uranium within its borders, report says
Reuters reported, citing sources, that Iran’s supreme leader issued a directive to keep enriched uranium within the country’s borders, potentially complicating negotiations for a resolution to the war. The report jolted oil prices higher, which led to Treasury yields resuming their recent upward trajectory and put downward pressure on equity futures.
— Fred Imbert
Asia markets broadly higher as Mideast peace deal hopes rise
Asia-Pacific markets mostly rose Thursday, tracking Wall Street gains, on rising optimism over a Middle East peace deal.
Japan’s Nikkei 225 ended Thursday’s trading session 3.14% higher at 61,684.14, as Japan’s exports in April clocked their fastest growth this year since January, beating estimates, thanks to a surge in semiconductor shipments.
SoftBank Group shares surged nearly 20%, as Nvidia‘s blockbuster earnings overnight signaled strong AI momentum.
South Korea’s Kospi advanced 8.42% at 7,815.59 while the small-cap Kosdaq rose 4.7% to 1,105.97. Index heavyweight Samsung Electronics added more than 8.5% after a strike involving more than 47,000 of its workers was averted following a breakthrough in wage negotiations. SK Hynix gained 11.2%.
Daniel Yoo, global strategist and head of global investment department of Yuanta Securities (Korea) said on CNBC’s “Squawk Box Asia” he expects Kospi to hit 10,000 by year-end.
South Korea will start 24-hour dollar-won spot trading on July 6, its finance ministry said Thursday, as part of ongoing reforms of its capital market to boost economic growth.
Australia’s S&P/ASX 200 advanced 1.47% to 8,621.70.
China’s CSI 300 gave up early gains, dropping 1.39% to 4,783.1, while Hong Kong’s Hang Seng Index was down 1.15% in the last hour of trade.
India’s Nifty 50 was flat in choppy trade, while the BSE Sensex lost 0.31%.
— Justina Lee
Asia-Pacific markets rise on optimism over Middle East conflict resolution
Asia-Pacific markets opened higher Thursday, tracking Wall Street gains, as growing hopes that the Middle East conflict could end soon cooled oil prices.
Japan’s Nikkei 225 was 3.54% higher after the release of the country’s latest trade data.
Exports rose at the fastest pace since January, rising 14.8% in April, exceeding expectations thanks to a surge in semiconductor shipments. Imports grew 9.7% year-on-year, higher than an expected 8.3% rise, according to government data. The country’s trade balance narrowed to 301.9 billion yen in April, from 643 billion yen in March.
Meanwhile, SoftBank Group surged nearly 20%, amid signs of AI’s strong momentum after Nvidia‘s blockbuster earnings overnight.
South Korea’s Kospi extended early gains to advance 7% while the small-cap Kosdaq was 4.88% higher. Index heavyweight Samsung Electronics added more than 6% after a strike involving more than 47,000 of its workers was averted following a breakthrough in wage negotiations. Another index heavyweight, SK Hynix, gained 11%.
Daniel Yoo, global strategist and head of global investment department of Yuanta Securities (Korea) said on CNBC’s “Squawk Box Asia” he expects Kospi to hit 10,000 by year-end.
Australia’s S&P/ASX 200 advanced 1.62%.
China’s CSI 300 gained 1.67%, while Hong Kong’s Hang Seng Index added 0.24%.
— Justina Lee
Investors play SpaceX through ETFs
See the stocks moving after hours
These are some of the stocks moving after hours:
- Nvidia — Shares ticked lower after the chip titan said revenue surged 85% year over year to $81.62 billion in the first quarter, exceeding the prediction of $78.86 billion from analysts polled by LSEG.
- Intuit — Shares tumbled 10.3% after the financial software stock announced a 17% workforce cut. Intuit also missed analyst expectations for revenue in the third fiscal quarter.
- E.l.f. Beauty — Shares of the retailer jumped nearly 5% after beating Wall Street’s expectations on the top and bottom lines for the fourth fiscal quarter.
— Alex Harring
S&P 500 futures edge lower
S&P 500 and Nasdaq 100 futures slipped 0.3% and 0.4%, respectively, shortly after 6 p.m. ET Wednesday night. Dow futures ticked down 0.1%.
— Alex Harring
