Semiconductor Stocks Support Positive Start
U.S. equity futures traded higher ahead of Thursday’s opening bell, pointing to a stronger start after the major indexes delivered mixed performances in the previous session.
Technology shares looked set to lead the advance, with semiconductor companies providing fresh momentum following Wednesday’s late recovery in the Nasdaq.
Nasdaq 100 futures rose about 1%, helped by strong pre-market gains in Micron Technology (NASDAQ:MU) and SanDisk (NASDAQ:SNDK).
Middle East Developments Remain in Focus
Investors continued to monitor geopolitical developments as tensions between the United States and Iran remained elevated.
U.S. Central Command said American forces carried out another round of strikes against roughly 90 military targets in Iran, aiming to weaken Tehran’s ability to threaten commercial shipping in the Strait of Hormuz.
“This is in retribution for yesterday’s bombing of ships by Iran. If it happens again, it will get much worse!” President Donald Trump wrote on Truth Social.
Iran reportedly retaliated with attacks targeting Bahrain, Kuwait and Qatar.
Speaking aboard Air Force One, Trump said Iran wanted to “make a deal so badly,” while adding that he was unsure whether the country was “worthy of making a deal.”
Markets Recover After Early Selloff
Wednesday’s trading session began with broad losses before equities recovered during the afternoon.
The Dow Jones Industrial Average ended down 576.76 points, or 1.1%, at 52,348.39, while the S&P 500 slipped 0.3% to 7,482.71. The Nasdaq Composite outperformed, rising 0.2% to close at 25,870.65.
The initial decline followed Trump’s announcement that the U.S.-Iran ceasefire was “over.”
“As far as I’m concerned, it’s over,” Trump told reporters during the NATO summit in Ankara, calling negotiations with Iran a “waste of time.”
He later said the United States would “very probably” strike Iran “hard again tonight.”
Oil and Interest Rate Concerns Shape Trading
Crude oil futures initially surged by more than 5%, raising fresh concerns that higher energy prices could keep inflation elevated and delay interest-rate cuts.
As oil retreated from its intraday highs, equity markets recovered much of their earlier losses.
Housing, airline, banking and commercial real estate stocks finished lower, while energy shares outperformed alongside stronger crude prices. Semiconductor and computer hardware companies also posted solid gains, helping technology stocks outperform.
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