U.S. stock futures are indicating a stronger open on Friday, pointing to a potential rebound after the pullback seen in the previous session.
A sharp jump in Intel Corp (NASDAQ:INTC) is expected to support early gains, with the chipmaker surging more than 25% in premarket trading.
The rally follows a significant earnings beat in the first quarter, along with a second-quarter revenue outlook that came in ahead of analyst expectations.
Corporate Strength Lifts Mood
Procter & Gamble (NYSE:PG) is also trading higher ahead of the open after delivering stronger-than-expected fiscal third-quarter results.
Market sentiment is further helped by easing oil prices, which are pulling back after several sessions of sharp increases.
According to Reuters, Iran’s Foreign Minister Seyed Abbas Araghchi is heading to Pakistan for discussions with U.S. officials, raising hopes for a possible easing of tensions.
Oil is also under pressure after President Donald Trump confirmed a three-week extension to the Israel-Lebanon ceasefire.
Thursday’s Session Ends in the Red
Following Wednesday’s rally, U.S. equities turned lower on Thursday, with the major indices retreating from recent highs.
Despite a partial recovery after a sharp afternoon dip, the markets closed decisively lower. The Nasdaq dropped 219.06 points, or 0.9%, to 24,438.50, the S&P 500 fell 29.50 points, or 0.4%, to 7,108.40, and the Dow Jones Industrial Average declined 179.71 points, or 0.4%, to 49,310.32.
Profit-taking weighed on early trading, reversing some of the week’s earlier gains.
Individual Stocks Weigh on Market
A steep decline in IBM (IBM), down 8.3%, added pressure after the company beat earnings expectations but did not raise its full-year outlook.
Honeywell (NASDAQ:HON) also slipped after reporting solid quarterly results but issuing a weaker-than-expected forecast for the next quarter.
In contrast, Texas Instruments (NASDAQ:TXN) surged 19.4% on strong earnings and optimistic guidance.
Oil Swings Drive Volatility
Stocks came under renewed pressure during the afternoon as oil prices spiked. Although U.S. crude later pared gains, it still ended the day more than 3% higher after climbing nearly 6% earlier.
The surge followed reports from N12 that Iran’s parliament speaker Mohammad Bagher Ghalibaf had stepped down from the country’s negotiating team amid tensions with the Revolutionary Guard.
Concerns about renewed escalation between the U.S. and Iran also weighed on sentiment after President Donald Trump said he had ordered the Navy to “shoot and kill any boat” placing mines in the Strait of Hormuz.
Trump also stated that Iran is “having a very hard time figuring out who their leader is,” citing divisions between “hardliners” and “moderates.”
These remarks added to uncertainty around future peace talks, with Trump dismissing claims that he is “anxious” to bring the conflict to an end.
Sector Performance Mixed
Software stocks led the declines, with the Dow Jones U.S. Software Index falling 5% after reaching a three-month high in the prior session.
ServiceNow (NYSE:NOW) was among the biggest laggards, plunging 17.8% despite reporting better-than-expected results.
Hardware stocks also weakened, with the NYSE Arca Computer Hardware Index down 2.9%.
Gold, biotech and brokerage stocks also moved lower, while utilities and semiconductor shares posted gains during the session.
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