Category: Market Summary

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.

U.S. equity futures ticked up on Friday after the S&P 500 and Nasdaq Composite closed at fresh all-time highs in the prior session, as investors weighed strong corporate earnings against ongoing geopolitical tensions tied to Iran.

By 07:25 GMT, S&P 500 futures were up 0.2% at 7,255.0 points, while Nasdaq 100 futures rose 0.1% to 27,617.25 points. Futures on the Dow Jones Industrial Average also gained 0.1% to 49,900.0 points.

Earnings Momentum Continues to Support Equities

Markets finished Thursday in positive territory, with the S&P 500 advancing 1% to close above the 7,200 level for the first time. The Nasdaq Composite climbed roughly 0.9% to a record close, while the Dow Jones led gains with a 1.6% jump.

The rally was underpinned by a steady stream of upbeat earnings, reinforcing confidence in corporate resilience and helping markets look past concerns over inflation and geopolitical instability.

In after-hours trading, Apple (NASDAQ:AAPL) rose close to 3% after posting quarterly results, supported by robust iPhone demand and continued expansion in its high-margin services division. The company delivered record revenue and earnings per share, with iPhone sales growing more than 20% for a second consecutive quarter.

Meanwhile, Reddit (NYSE:RDDT) surged more than 13% after the close, following stronger-than-expected quarterly results and higher daily active user figures.

Investors are also looking ahead to additional earnings reports, with Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), and AutoNation (NYSE:AN) due to release results before Friday’s opening bell.

Iran Tensions Keep Markets on Edge

Despite strong earnings support, sentiment remains cautious amid persistent geopolitical risks. Reports indicated that Donald Trump is set to receive a briefing on potential military options involving Iran, heightening fears of further escalation.

Iran has warned that any renewed U.S. military action would trigger “long and painful strikes” against American positions in the region.

The Strait of Hormuz remains disrupted, impacting a critical route for global oil shipments and tightening supply expectations. Brent crude briefly surged above $126 per barrel on Thursday—its highest level in four years—before pulling back to around $114 amid profit-taking and currency fluctuations.

U.S. equity futures are indicating a firmer open on Thursday, pointing to potential gains after markets ended the previous session largely directionless.

Investor optimism is being supported by upbeat reactions to the latest batch of earnings from major technology companies.

Shares of Alphabet (NASDAQ:GOOGL) are rallying 7.1% in premarket trading after the Google parent delivered first-quarter revenue above expectations.

Amazon (NASDAQ:AMZN) is also advancing 3.7% ahead of the open following better-than-expected quarterly results.

Meanwhile, Qualcomm (NASDAQ:QCOM) is posting notable premarket gains after reporting stronger-than-forecast fiscal second-quarter earnings.

In contrast, Meta Platforms (NASDAQ:META) is under pressure, dropping 7.8% in premarket trading. Although its results beat expectations, investors reacted negatively to an increase in projected capital expenditures.

A modest pullback in oil prices is also helping support early gains, with U.S. crude futures down more than 1% despite ongoing geopolitical risks in the Middle East.

Previous session lacked clear direction

Following Tuesday’s decline, Wednesday’s trading session was marked by indecision. Both the Nasdaq and the S&P 500 fluctuated around flat levels before finishing with mixed results.

The Nasdaq edged higher by 9.44 points, or less than 0.1%, closing at 24,673.24, while the S&P 500 slipped 2.85 points, also less than 0.1%, to 7,135.95.

The Dow Jones Industrial Average underperformed, falling 280.12 points, or 0.6%, to 48,861.81, dragged lower by declines in Boeing (NYSE:BA), IBM (NYSE:IBM), and Travelers (NYSE:TRV).

Caution ahead of key developments

The muted market tone reflected investor hesitation ahead of important earnings releases from leading tech firms.

Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Microsoft (NASDAQ:MSFT) were among the companies reporting after the close.

Attention also remained on the latest policy decision from the Federal Reserve, which left interest rates unchanged following a notably split vote.

The Fed maintained the federal funds rate target range at 3.50% to 3.75%, citing its dual mandate of supporting employment and keeping inflation near 2% over time.

Beth Hammack, Neel Kashkari, and Lorie Logan backed holding rates steady but “did not support inclusion of an easing bias in the statement at this time.”

They reportedly objected to the phrase “additional adjustments to the target range,” given that the Fed’s recent policy moves have involved rate cuts.

Sector performance shows mixed picture

Despite the broader market’s lack of direction, several sectors posted strong gains. Networking stocks led the way, with the NYSE Arca Networking Index jumping 4.8% to a record close.

Energy stocks also moved higher alongside oil prices, lifting the NYSE Arca Oil Index by 3.2%.

Semiconductors, computer hardware, and oil services stocks also performed well, while gold, airline, and steel stocks experienced notable declines.

European equities moved broadly higher on Thursday as investors digested central bank decisions from the European Central Bank and the Bank of England, while continuing to monitor geopolitical developments in the Middle East.

Strong earnings from major U.S. tech names including Alphabet, Amazon, Meta Platforms and Microsoft supported sentiment, although concerns lingered over Meta’s heavy investment in artificial intelligence.

The Bank of England held its benchmark rate steady but warned of potential second-round inflationary effects stemming from rising energy prices. Meanwhile, the European Central Bank also opted to leave interest rates unchanged.

On the macro front, weaker-than-expected German retail sales data for March and disappointing first-quarter GDP figures from France weighed on sentiment.

Inflation across the eurozone accelerated to 3.0% year-over-year in April, up from 2.6% in March and in line with expectations.

Oil prices remained elevated, with Brent crude for June trading near $122 per barrel following reports that U.S. Central Command has drawn up plans for a “short and powerful” series of strikes on Iran.

Major indices and stock movers

In terms of benchmarks, the FTSE 100 gained 1.6%, while Germany’s DAX rose 0.9% and France’s CAC 40 edged up 0.1%.

Among individual stocks, Puma (BIT:1PUM) climbed 2.8% after announcing a change in its chief financial officer.

Delivery Hero (TG:DHER) jumped 6% after reporting improved first-quarter growth in gross merchandise value.

Glencore (LSE:GLEN) gained nearly 2% after reaffirming its 2026 production outlook following broadly in-line quarterly output.

Unilever (LSE:ULVR) added 1.3% after launching a €1.5 billion share buyback program.

Standard Chartered (LSE:STAN) advanced 1.6% after reporting record first-quarter earnings.

Persimmon (LSE:PSN) rose 2.1% after maintaining its delivery and profit targets for 2026.

Rolls-Royce Holdings (LSE:RR.) surged 6% after expressing confidence in meeting its full-year guidance despite disruption from Middle East tensions.

Arcadis (EU:ARCAD) soared 11.5% after posting first-quarter results that exceeded expectations.

Air France-KLM (EU:AF) gained around 1% in Paris after narrowing its quarterly loss.

On the downside, Credit Agricole (EU:ACA) dropped 6.4% after reporting earnings below forecasts.

Other banks also came under pressure, with BNP Paribas (EU:BNP) falling 5.2% and Societe Generale (EU:GLE) declining 6.5% following their respective results.

Technip Energies (EU:TE) slid 8.6% after cutting its full-year outlook, citing disruptions linked to the Middle East conflict.

U.S. stock futures suggest a muted open on Wednesday, with markets lacking clear direction after the previous session’s decline.

Investors are staying cautious ahead of the upcoming policy announcement from the Federal Reserve later in the day.

Data from CME Group’s FedWatch Tool shows markets are fully pricing in a pause in interest rates for a third consecutive meeting.

With that outcome largely expected, attention is likely to turn to the Fed’s statement for signals about the future path of monetary policy. However, in the absence of firm guidance, focus may shift toward earnings from major technology companies.

Alphabet Inc. (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META), and Microsoft Corporation (NASDAQ:MSFT) are all due to report after the closing bell.

As part of the so-called “Magnificent Seven,” their results are expected to play a key role in shaping sentiment, particularly as questions re-emerge around the sustainability of AI-related spending.

At the same time, markets have shown resilience in the face of another surge in oil prices, with U.S. crude futures briefly climbing above $100 per barrel following renewed tensions involving Iran and comments from President Donald Trump.

“Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!” Trump said on Truth Social, alongside an image of himself holding a rifle and the words “No more Mr. Nice Guy!”

Market Recap

After a mixed session on Monday, U.S. equities moved lower on Tuesday, with all three major indices finishing in negative territory and technology stocks leading the decline.

The Nasdaq Composite dropped 223.30 points, or 0.9%, to 24,663.80. The S&P 500 fell 35.11 points, or 0.5%, to 7,138.90, while the Dow Jones Industrial Average edged down 25.86 points, or 0.1%, to 49,141.93.

The Nasdaq pulled back from its recent record close as artificial intelligence-related stocks came under pressure following a report from The Wall Street Journal that OpenAI had missed internal targets for both user growth and revenue.

Sources cited in the report suggested that the shortfall has raised concerns about the company’s ability to sustain its heavy investment in data center infrastructure.

Oracle Corporation (NYSE:ORCL), which is closely tied to OpenAI through a major infrastructure partnership, fell 4.1%.

Semiconductor stocks also declined, including Broadcom Inc. (NASDAQ:AVGO), Advanced Micro Devices Inc. (NASDAQ:AMD), and NVIDIA Corporation (NASDAQ:NVDA).

Oil Prices and Geopolitical Tensions

Higher oil prices added another layer of uncertainty, with U.S. crude briefly trading above $100 per barrel before easing.

The rally has been fueled by ongoing geopolitical tensions between the U.S. and Iran.

Recent developments suggest that Trump is unlikely to accept Iran’s proposal to reopen the Strait of Hormuz while postponing negotiations over its nuclear programme.

In another Truth Social post, Trump said Iran is in a “state of collapse” and is seeking to reopen the Strait of Hormuz as it deals with internal leadership challenges.

CNN reported that Iran is preparing a “revised proposal,” with mediators in Pakistan waiting for the updated plan.

Sector Performance

Gold-related stocks declined sharply as bullion prices dropped, dragging the NYSE Arca Gold Bugs Index down 4.6%.

Semiconductor stocks also came under heavy pressure, with the Philadelphia Semiconductor Index falling 3.6%.

Weakness was also seen in computer hardware, networking, and airline stocks, while energy shares, particularly oil and gas companies, moved higher.

U.S. equity futures were modestly higher on Wednesday but hovered near unchanged levels as investors braced for a series of key developments. The Federal Reserve is expected to leave interest rates unchanged, though reports indicate it could shift its messaging in a more hawkish direction. Meanwhile, several mega-cap technology firms are due to report results, with markets closely watching their spending on artificial intelligence. In Europe, a wave of corporate earnings is underway, while Donald Trump has reportedly told aides to prepare for an extended blockade of Iranian ports.

Futures Edge Higher

U.S. stock futures posted slight gains in early trading, ahead of what is shaping up to be one of the busiest sessions of the year.

As of 03:26 ET, Dow futures were up 47 points, or 0.1%, S&P 500 futures added 5 points, or 0.1%, and Nasdaq 100 futures climbed 85 points, or 0.3%.

Wall Street’s main indices ended the previous session lower, largely due to renewed concerns about the financial outlook for OpenAI after a The Wall Street Journal report said the firm had missed certain revenue and user targets. Shares of companies linked to OpenAI also weakened following the news.

At the same time, stalled negotiations between the U.S. and Iran continued to weigh on sentiment, delaying any reopening of the Strait of Hormuz, which has effectively remained closed to shipping traffic for weeks. Oil prices have moved higher, adding to concerns over inflation and economic growth worldwide.

Even so, corporate earnings have shown resilience. Reuters data shows that just over one-third of S&P 500 sectors have reported so far, with 81% of companies beating expectations.

Focus Turns to Fed Decision

The Federal Reserve is widely expected to keep rates steady within a 3.5% to 3.75% range at the end of its two-day meeting, as policymakers monitor the inflationary implications of geopolitical tensions.

According to the The Wall Street Journal, the Fed may adjust its forward guidance in a more hawkish tone by removing references to potential rate cuts in 2026.

The meeting could also include one of the final press conferences by Fed Chair Jerome Powell, whose term is set to expire in May.

“Powell’s (supposedly) final press conference shouldn’t rock the boat, but he could err a bit on the hawkish side given the lack of progress in the Gulf,” analysts at ING Group wrote.

Former Fed Governor Kevin Warsh has been nominated by Trump as Powell’s successor, with a Senate vote on his confirmation expected this week.

Tech Earnings in the Spotlight

Investors are also digesting a busy schedule of corporate results, particularly from major technology companies whose AI investments have underpinned recent market gains.

Alphabet Inc. (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) are all due to report after the market close.

Following the negative sentiment triggered by the OpenAI report, these results will be closely watched as a test of confidence in the AI-driven rally.

“[P]articipants will be looking not only for the classic ‘beat and raise’ from these ‘Magnificent Seven’ names, but also for clarity as to the scale of capital expenditure over coming quarters, the source of that expenditure, and the timeframe over which a return on said investment is likely to be achieved,” said Michael Brown.

“With the sector coming into earnings, essentially, at record highs, we are to a degree ‘priced for perfection’, leaving little room for disappointment, and with the market hence likely to punish any sub-par reports.”

Outside of tech, companies including AbbVie (NYSE:ABBV), Regeneron Pharmaceuticals (NASDAQ:REGN), and Phillips 66 (NYSE:PSX) are also set to release results.

European Earnings Wave

Amid the uncertain backdrop, several major European firms released their latest quarterly figures earlier in the day.

Adidas AG saw its shares jump more than 7% after posting stronger-than-expected operating profit for the first quarter, despite what it described as a “very volatile and heavily discounted” retail environment.

UBS Group AG moved higher after reporting an 80% increase in quarterly profit, supported by strong trading and client activity amid market volatility.

STMicroelectronics advanced to its highest level since 2024 following better-than-expected results.

Airbus SE edged up after reaffirming its annual delivery targets, even as it faces supply challenges from Pratt & Whitney.

Mercedes-Benz Group AG posted modest gains despite weaker revenue, while Banco Santander hovered near flat after reporting a 12.5% rise in underlying profit.

Trump Signals Extended Iran Blockade

Donald Trump has instructed aides to prepare for a prolonged blockade of Iran, according to a report from the The Wall Street Journal.

Citing U.S. officials, the report said the strategy would focus on tightening restrictions on Iran’s oil exports and limiting maritime access to its ports, with a blockade viewed as a lower-risk alternative to renewed large-scale military action or a rapid diplomatic resolution.

The move follows an April ceasefire that halted a major bombing campaign but left tensions unresolved.

According to the report, Trump recently rejected a three-step proposal from Iran that would have reopened the Strait of Hormuz quickly while postponing nuclear negotiations, judging it insufficient to meet U.S. demands.

The report added that Trump remains firm in requiring Iran to suspend uranium enrichment for at least 20 years and accept additional long-term restrictions.