U.S. stock futures moved modestly higher after Wall Street closed at record levels, as investors weighed strong corporate earnings against rising geopolitical tensions and currency swings. A positive outlook from Apple (NASDAQ:AAPL) helped support sentiment, while oil prices held onto weekly gains amid ongoing tensions involving Iran.
At the same time, weakness in the Japanese yen and a steady stream of earnings reports from major U.S. companies kept attention focused on both macroeconomic trends and corporate performance. Most European markets were closed for the Labor Day holiday.
Apple Guidance Reinforces Market Momentum
Equity momentum carried forward, with U.S. futures rising after key indices reached fresh all-time highs. In Asia, Japan’s Nikkei 225 advanced, while several other regional markets remained shut for holidays.
Apple drew investor attention after issuing a stronger-than-expected revenue forecast, though it warned that higher memory chip costs and Mac supply constraints could persist for “several months.” Meanwhile, Tokyo Electron also contributed to positive sentiment with a better-than-expected outlook for first-half operating income.
Apple projected solid sales growth for the current quarter and announced a $100 billion share repurchase plan. The company expects fiscal third-quarter revenue growth of 14% to 17%, significantly above market expectations of around 9.5%, driven by demand for the iPhone 17 and MacBook Neo.
For its fiscal second quarter, Apple reported revenue of $111.18 billion and earnings per share of $2.01, both exceeding analyst forecasts. iPhone revenue totaled $56.99 billion, slightly below estimates due to supply limitations.
Earnings Season Remains a Key Driver
Corporate earnings continue to guide market direction, with results expected from Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Estée Lauder (NYSE:EL), and Colgate-Palmolive (NYSE:CL).
Strategists at Barclays noted that “blended Q1 EPS growth is turning up,” while adding that earnings surprises remain “much stronger in the US than Europe,” highlighting continued divergence between regions.
Yen Weakness Keeps FX Markets in Focus
In currency markets, the Japanese yen weakened again, with USD/JPY drifting back toward the 157 level despite recent intervention efforts by Tokyo authorities. Officials signaled readiness to act again, particularly as oil market volatility continues to influence currency movements.
Tim Baker said he is not convinced the pair “will keep falling or even stay here for long.”
“The cross may well be high relative to rates, but it’s actually low relative to a simple model that includes rates, equities and oil.”
Oil Prices Stay Supported by Geopolitical Risks
Oil prices maintained a second consecutive week of gains as geopolitical tensions intensified. Donald Trump said the United States would continue its naval blockade of Iranian ports, while reports suggested that senior military officials had outlined additional options for action against Iran, reinforcing the risk premium in energy markets.
Iran warned it would respond with “long and painful strikes” against U.S. positions if Washington resumes attacks, while reiterating its stance over control of the Strait of Hormuz.
Corporate Updates: OpenAI Addresses Growth Concerns
In corporate developments, OpenAI dismissed concerns about missing internal targets, with its CFO pointing to strong execution and “a vertical wall of demand.”
Separately, S&P Dow Jones Indices launched a consultation that could speed up the inclusion of newly listed large-cap companies into its benchmark indices.
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