U.S. equity futures were little changed on Thursday as markets balanced optimism over diplomatic progress in the Middle East against a busy corporate earnings calendar and awaited key labour market data due later this week.
At 01:17 ET (05:17 GMT), Dow Jones futures were up 122 points, or 0.2%, while S&P 500 futures also gained 0.2%. Nasdaq 100 futures slipped 0.1%, as weakness in large technology stocks continued to weigh on sentiment.
Wall Street ended Wednesday’s trading on a mixed note. The Dow Jones Industrial Average added 0.5%, while the S&P 500 declined 0.2% and the Nasdaq Composite lost 0.8%.
Technology stocks remained under pressure after investors reacted to reports that SpaceX (NASDAQ:SPCX) plans to significantly increase spending on artificial intelligence. Advanced Micro Devices (NASDAQ:AMD) also moved lower after Elon Musk said SpaceX would no longer use the company’s latest AI chips, despite AMD posting broadly encouraging quarterly results.
Economic releases also painted a mixed picture. ADP data showed that private-sector hiring slowed more than expected in July, although wage growth remained strong for workers changing jobs. Separate figures pointed to stronger activity across the U.S. services sector, supported by rising new orders and production, while employment weakened and inflationary pressures accelerated. Investors are now looking ahead to Friday’s closely watched U.S. non-farm payrolls report.
Diplomatic developments remain in focus
Attention also remained fixed on negotiations between Washington and Tehran.
Although President Donald Trump has repeatedly said discussions with Iran are progressing positively, no formal agreement has yet been announced.
Reuters reported that U.S. officials continue to insist any deal must prevent Iran from controlling access to the Strait of Hormuz, the strategic waterway that previously handled around 20% of global oil and liquefied natural gas exports.
However, the news agency also reported that a proposed arrangement between Iran and Oman would give Tehran oversight of vessels entering the Gulf through the Strait of Hormuz. Iranian Foreign Ministry spokesperson Esmail Baghaei said both countries have agreed on the geographic coordinates of a designated shipping corridor.
A senior Iranian official also told Reuters that Tehran is seeking transit charges of up to 7% of the value of cargo carried by commercial vessels. Before the conflict, commercial shipping passed through the strait without paying such fees.
Oil prices edged around 0.3% lower after a volatile session on Wednesday, with traders continuing to assess the implications for inflation and future central bank policy.
Sandisk exceeds estimates but guidance prompts profit-taking
Sandisk (NASDAQ:SNDK) reported quarterly results ahead of analysts’ forecasts, benefiting from stronger pricing and robust demand for memory products used in data centres.
For the first quarter of fiscal 2027, the company forecast revenue of between $10.3 billion and $10.8 billion, broadly matching analysts’ expectations of $10.62 billion. Adjusted earnings per share are expected to range between $44.00 and $46.00, compared with a consensus estimate of $44.21.
Despite expanding its share repurchase programme and delivering another quarter of exceptional growth, investors focused on guidance that largely met expectations rather than exceeding them. Shares fell about 2% in after-hours trading.
Fourth-quarter revenue climbed to $8.97 billion, representing sequential growth of 51% and an increase of 372% from a year earlier. GAAP net income rose to $6.90 billion, or $43.97 per diluted share, compared with a loss of $23 million, or $0.16 per share, in the same period last year.
Block upgrades annual outlook
Block (NYSE:XYZ) reported quarterly revenue and earnings above market expectations and increased its forecast for adjusted profit for the full year.
The financial technology company also issued stronger-than-expected adjusted profit guidance for the current quarter, although its Class A shares slipped slightly in premarket trading.
Block’s portfolio includes the Square payments platform, the Afterpay buy-now-pay-later business and Cash App, its largest revenue-generating platform, which enables digital payments, personal finance services and bitcoin trading.
Originally founded as Square in 2009 by Twitter co-founder Jack Dorsey, the company rebranded as Block in 2021 to reflect its broader ambitions in blockchain and digital technologies.
Moderna wins FDA approval for first mRNA flu vaccine
Moderna (NASDAQ:MRNA) announced that the U.S. Food and Drug Administration has approved mFLUSIVA for adults aged 50 and over, making it the company’s first mRNA influenza vaccine and its fourth product authorised by the regulator.
The biotechnology company expects to begin shipping the vaccine to selected U.S. retailers in the coming weeks ahead of the 2026-2027 respiratory virus season. Worldwide, the approval makes mFLUSIVA Moderna’s fifth authorised product.
The decision follows a unanimous recommendation from the FDA’s advisory committee and is supported by Phase 3 clinical trial data involving more than 40,800 participants across 11 countries.
For adults aged 65 and older, the vaccine received accelerated approval based on immune response data from a separate U.S. study involving 2,992 participants. Moderna said further post-marketing studies will be conducted to confirm long-term clinical benefits in older adults.
The company’s shares moved higher in extended trading.
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