U.S. stock futures indicated a largely flat opening on Friday, pointing to a cautious tone as markets pause following a late rebound in the previous session.
Investors appear hesitant to take decisive positions amid continued uncertainty surrounding the Middle East ceasefire.
Ahead of scheduled U.S.-Iran discussions in Pakistan this weekend, President Donald Trump criticized Iran, saying it is doing a “very poor job” of allowing oil shipments through the Strait of Hormuz, adding, “That is not the agreement we have!”
He also addressed reports that Iran may be charging fees to tankers passing through the key shipping route, warning, “They better not be and, if they are, they better stop now!”
“With talks between Tehran and Washington set to get underway on Saturday, investors could be in for a fretful weekend as they wait for indications of whether a path to lasting peace is possible,” said AJ Bell’s head of markets Dan Coatsworth. “Ahead of this, investors may well be tempted to hedge their bets.”
Futures showed little movement after the Labor Department reported that U.S. consumer prices rose in line with expectations in March.
Following Wednesday’s strong rally, stocks retreated early in Thursday’s session before rebounding later in the day. The major indices recovered from intraday lows and closed in positive territory.
This extended the upward momentum, pushing the benchmarks to their highest closing levels in over a month.
The Nasdaq gained 187.42 points, or 0.8%, to 22,822.42, while the Dow Jones Industrial Average rose 275.88 points, or 0.6%, to 48,185.80, and the S&P 500 advanced 41.85 points, or 0.6%, to 6,824.66.
The turnaround came as traders monitored geopolitical developments and their effect on oil markets.
Crude oil initially rebounded sharply after Wednesday’s steep drop, before paring gains while still ending significantly higher.
The earlier surge reflected concerns about the stability of the ceasefire, with Iran accusing the U.S. and Israel of breaching the agreement.
Iran’s deputy foreign minister Saeed Khatibzadeh said in an interview with the BBC that the country had once again shut the Strait of Hormuz.
Khatibzadeh described Israel’s strikes on Lebanon as an “intentional grave violation” of the ceasefire.
Oil prices later eased after Benjamin Netanyahu said Israel would begin negotiations with Lebanon “as soon as possible.”
He added that the discussions would focus on disarming Hezbollah and working toward more stable ties between the two nations.
On a sector basis, retail stocks posted strong gains, with the Dow Jones U.S. Retail Index rising 2.9% to its highest level in more than two months.
Semiconductor stocks also performed well, as reflected in a 2.1% increase in the Philadelphia Semiconductor Index.
Transportation and banking stocks moved higher, while software shares remained under pressure throughout the session.
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