US equity futures traded close to unchanged levels as investors considered developments in the US-Iran conflict, movements in bond markets and the latest corporate updates ahead of Friday’s US employment report.
At 03:50 ET, S&P 500 Futures stood at 7,671.1 points, while Nasdaq 100 Futures were at 29,211.25 and Dow Jones Futures were at 53,195, with all three contracts showing limited movement.
The futures performance followed gains on Wall Street as equities recovered from their weaker start to September. Investors continued to await Friday’s labour market figures for additional information on the economic backdrop ahead of future Federal Reserve policy decisions.
Brent and WTI Decline Following Three-Day Advance
Crude oil prices moved lower during Asian trading on Thursday, ending a three-session run of gains as investors monitored the latest developments involving the US and Iran.
Brent crude futures fell 0.4% to $95.25 per barrel, while WTI futures declined 0.2% to $90.80. Both benchmarks had advanced by almost 1% during Wednesday’s session, reaching their highest levels in around five weeks.
Prices moved lower after US President Donald Trump said the renewed attacks against Iran would not continue for long. US officials also indicated that energy flows through the Strait of Hormuz were recovering.
Developments around the Strait of Hormuz remained under scrutiny because of the route’s importance to international energy shipments.
Missile and Drone Strikes Target US Bases in Kuwait
Iran carried out missile and drone strikes targeting US bases in Kuwait late Wednesday, according to state-run Press TV.
Kuwait’s Armed Forces said air defence systems were intercepting “hostile targets,” but did not identify their source.
The reported action followed US strikes against Iranian targets near the Strait of Hormuz and subsequent Iranian missile and drone attacks on US infrastructure elsewhere in the Gulf.
Investors continued to assess developments in the region and their potential implications for energy shipments through the Strait of Hormuz.
Williams Links Higher Bond Yields to US Economic Strength
New York Fed President John Williams said the increase in longer-term bond yields reflected the strength of the US economy rather than concerns over inflation.
Speaking to CNBC, Williams attributed higher borrowing costs to the economic outlook, which he said was supported in part by investment in artificial intelligence, data centres and technology.
Federal Reserve Governor Christopher Waller was scheduled to deliver remarks later on Thursday, providing investors with another opportunity to assess the monetary policy outlook before the Fed’s next decision.
Broadcom Forecasts Fourth-Quarter Revenue of About $34.8 Billion
Broadcom (NASDAQ:AVGO) projected fiscal fourth-quarter revenue of approximately $34.8 billion, compared with the Wall Street consensus forecast of around $35.05 billion.
The company expects AI chip sales of $21.7 billion, slightly above expectations of approximately $21.33 billion.
The reported results were broadly consistent with Wall Street forecasts, according to the source material, while Broadcom’s overall revenue projection for the fourth quarter came in below analysts’ average estimate.
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