Category: Market Summary

U.S. equity futures traded modestly higher ahead of Friday’s opening bell, indicating that Wall Street could build on the gains recorded in the previous session as markets continue to assess reports of progress in negotiations between the United States and Iran.

Improving expectations that diplomatic efforts could reduce tensions in the Middle East have boosted investor confidence, while falling oil prices have added further support to risk assets.

Oil prices retreat amid ceasefire extension reports

Energy markets moved lower after reports suggested that Washington and Tehran had reached a preliminary framework to extend their current ceasefire arrangement by an additional 60 days.

U.S. crude futures fell 1.4% following the news, which indicated that the proposed agreement could lead to the reopening of the Strait of Hormuz and revive discussions surrounding Iran’s nuclear programme.

However, investors remain cautious as the reported framework still requires approval from President Donald Trump before it can move forward.

Dell earnings spark enthusiasm in technology sector

Technology stocks looked set to provide a positive catalyst after Dell Technologies (NYSE:DELL) surged more than 30% in pre-market trading.

The computer manufacturer exceeded analysts’ expectations with its fiscal first-quarter results and simultaneously increased its outlook for the remainder of the year.

The strong performance reinforced confidence in the technology sector, which has continued to play a central role in driving broader market gains.

Markets await confirmation before taking bigger risks

Despite the constructive tone, traders appeared hesitant to fully embrace risk until there is greater clarity regarding the reported agreement between the United States and Iran.

“Overall, markets are heading into the weekend in a good position as risk appetite has improved as geopolitical fears ease and inflation data avoids a major upside surprise,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

“However, positioning remains optimistic, valuations are elevated and much of the recent rally still relies on assumptions that tensions continue to de-escalate and earnings remain resilient,” she added. “That means investors are likely to remain highly sensitive to both geopolitical headlines and incoming inflation data in the weeks ahead.”

Thursday rally sends major indices to new records

Thursday’s session began on a weak note before stocks staged a powerful recovery later in the day.

The turnaround pushed all three major benchmarks into positive territory, with technology stocks once again leading the advance.

The Nasdaq gained 242.74 points, or 0.9%, to finish at a record 26,917.47. The S&P 500 rose 43.27 points, or 0.6%, to 7,563.63, while the Dow Jones Industrial Average added 24.69 points, or 0.1%, ending at 50,668.97.

Axios report fuels market optimism

The shift in sentiment followed a report from Axios claiming that U.S. and Iranian negotiators had agreed on the outline of a 60-day memorandum of understanding.

According to Axios, which cited two U.S. officials and a regional source familiar with the mediation efforts, the proposal would extend the ceasefire while opening formal negotiations over Iran’s nuclear programme.

The report noted that President Donald Trump has yet to approve the proposal, with one U.S. official indicating that the president wanted additional time to evaluate the arrangement.

Oil volatility highlights fragile geopolitical backdrop

After the Axios report emerged, crude prices retreated from earlier highs, although U.S. oil futures still finished the session modestly higher after surging by as much as 4.3% during trading.

Earlier gains in oil had been driven by reports that the United States launched another round of what it called “self-defense strikes” against targets in southern Iran, prompting Tehran to reportedly target a U.S. air base in response.

“Investors are still broadly positioned for a de-escalation scenario in the Middle East, but recent headlines are a reminder that the path toward any agreement remains fragile,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

Softer inflation data provides additional support

Economic data released on Thursday also helped improve sentiment after inflation figures came in slightly below expectations.

The Commerce Department reported that its Personal Consumption Expenditures (PCE) Price Index increased 0.4% in April, following a 0.7% rise in March. Economists had forecast a 0.5% increase.

On an annual basis, headline PCE inflation accelerated to 3.8% from 3.5%, matching market expectations.

The core PCE index, which excludes food and energy prices, rose 0.2% in April after increasing 0.3% in March. Economists had expected another 0.3% gain.

Annual core inflation edged up to 3.3% from 3.2%, in line with consensus forecasts.

Technology and biotech sectors lead the market higher

Technology shares were among the strongest performers of the day, helping propel the Nasdaq to another record close.

The Dow Jones U.S. Software Index advanced 3.4%, while the NYSE Arca Computer Hardware Index climbed 2.9%.

Biotechnology stocks also posted impressive gains, with the NYSE Arca Biotechnology Index rising 2.6%.

Additional strength was seen across gold-related, pharmaceutical and healthcare stocks, while oil services and utility companies lagged behind as investors rotated into higher-growth areas of the market.

U.S. equity futures traded close to unchanged on Friday as market participants assessed reports of progress in negotiations between the United States and Iran, while also turning their attention to a series of potentially record-setting stock market debuts expected later this year.

Futures hold steady

At 03:42 ET, futures linked to the Dow Jones Industrial Average and the S&P 500 were broadly flat, while Nasdaq 100 futures slipped by 0.1%.

U.S. stocks ended Thursday’s session modestly higher after investors welcomed a combination of encouraging corporate earnings, softer-than-expected inflation data and growing hopes that diplomatic efforts could lead to a resolution of the conflict involving Iran.

“We still think an Iran deal is widely expected and so the reaction in the SPX when one arrives shouldn’t be dramatic at this point, although oil and yields have room to fall, and could have a more pronounced response to an accord,” analysts at Vital Knowledge said in a note.

Reports suggest progress on extending Iran truce

According to media reports, Washington and Tehran have reached a preliminary agreement to prolong their existing ceasefire, although the proposal still requires approval from President Donald Trump.

Sources cited by Reuters said the arrangement would extend the truce by 60 days and allow commercial vessels to once again pass through the Strait of Hormuz while negotiators continue discussions on a broader framework that includes Iran’s nuclear programme.

The Strait of Hormuz has become one of the most critical issues in the conflict. Around 20% of global oil shipments pass through the waterway, and restrictions imposed during the crisis have disrupted energy flows, tightened supply and driven crude prices sharply higher.

Oil heads lower on easing supply concerns

Energy markets responded positively to the prospect of renewed stability in the region.

Brent crude futures traded around $93.87 per barrel, while U.S. West Texas Intermediate futures slipped 0.2% to $88.72 per barrel.

The recent decline puts oil on course for its largest weekly loss since early April, although prices remain significantly above levels seen before the conflict began. Earlier in the crisis, crude prices briefly climbed above $100 per barrel, intensifying concerns that rising energy costs could feed into global inflation.

Fresh inflation data from the United States indicated that price pressures eased more than expected in April. However, there are signs that higher fuel and energy costs are beginning to weigh on consumers, leading some households to reduce spending.

“[T]he Fed is unlikely to cut rates again anytime soon and will likely retain a hawkish bias over the summer months, until policymakers are confident that the energy surge has passed and will start to reverse,” analysts at ING said in a note. “But that requires a deal to re-open the Strait of Hormuz.”

Anthropic nears trillion-dollar valuation milestone

Investor attention was also drawn to developments in the technology sector, where several high-profile listings are expected to dominate capital markets activity in the months ahead.

Artificial intelligence company Anthropic announced a $65 billion Series H funding round, giving the business a post-money valuation of $965 billion and bringing it close to the trillion-dollar mark.

The fundraising attracted backing from a wide range of major investors, including Altimeter Capital, Dragoneer, Greenoaks, Sequoia Capital, Capital Group, Coatue, D1 Capital Partners, GIC, ICONIQ and XN.

Anthropic chief financial officer Krishna Rao said the company’s annualised revenue run rate surpassed $47 billion earlier this month, driven by increasing demand from enterprise customers following its Series G financing round in February.

The company said the new capital would be used to strengthen its computing infrastructure, advance research into AI safety and interpretability, and support the continued expansion of its Claude artificial intelligence models.

Anthropic has recently secured significant computing capacity through partnerships with Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), Broadcom (NASDAQ:AVGO) and SpaceX (NASDAQ:SPCX).

Its Claude models are currently available through Amazon Web Services, Google Cloud and Microsoft Azure, with AWS continuing to serve as the company’s primary cloud and training partner.

SpaceX reportedly lowers IPO valuation goal

Meanwhile, Bloomberg News reported that SpaceX (NASDAQ:SPCX) is targeting a valuation of at least $1.8 trillion for its forthcoming initial public offering.

Although below earlier internal projections of more than $2 trillion, the revised figure would still make the offering the largest IPO ever undertaken if achieved.

According to the report, the company plans to raise as much as $75 billion through the transaction. Investor presentations could begin as early as 4 June, with pricing potentially taking place around 11 June.

Bloomberg noted that the lower valuation target followed discussions with advisers and institutional investors, although the final valuation and amount raised will depend on demand throughout the marketing process.

With geopolitical developments and landmark technology listings both shaping investor sentiment, markets are likely to remain focused on the progress of Iran negotiations and the scale of upcoming IPOs as key themes in the weeks ahead.

U.S. stock futures traded modestly lower early Thursday, signaling a weaker start for Wall Street after markets closed slightly higher in the previous session despite uneven trading throughout the day.

Investor sentiment was pressured by a recovery in oil prices as geopolitical concerns resurfaced following renewed military activity involving the United States and Iran.

U.S. crude futures rose more than 2% after suffering losses of over 8% during the previous two trading sessions.

The rebound in oil came after reports that the United States carried out another round of “self-defense strikes” in southern Iran, while Tehran reportedly responded by targeting a U.S. military base.

“Investors are still broadly positioned for a de-escalation scenario in the Middle East, but recent headlines are a reminder that the path toward any agreement remains fragile,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

Futures trimmed some of their declines after fresh inflation data suggested price pressures in the U.S. were slightly softer than expected in April.

Data from the Commerce Department showed the personal consumption expenditures (PCE) price index increased 0.4% in April following a 0.7% rise in March. Economists had forecast a 0.5% gain.

On a yearly basis, PCE inflation accelerated to 3.8% from 3.5% in March, matching analyst projections.

Core PCE, which excludes food and energy costs, rose 0.2% in April after increasing 0.3% in the prior month. Economists had expected another 0.3% increase.

Annual core inflation edged up to 3.3% from 3.2%, also in line with market expectations.

Separately, Labor Department figures showed initial claims for unemployment benefits in the United States increased slightly more than analysts had anticipated in the week ended May 23.

On Wednesday, U.S. markets delivered modest gains despite a relatively subdued session. The Dow Jones Industrial Average outperformed and closed at another record high, joined by both the Nasdaq and S&P 500.

The Dow advanced 182.60 points, or 0.4%, to finish at 60,644.28. The Nasdaq Composite rose 18.55 points, or 0.1%, to 26,674.73, while the S&P 500 added 1.24 points to close at 7,520.36.

The uneven market action reflected lingering uncertainty among investors following the recent rally in equities.

Traders also remained focused on diplomatic developments involving the United States and Iran, with many market participants still optimistic that some form of agreement could eventually be reached.

Expectations that tensions could ease had previously weighed on oil markets, contributing to a drop of more than 5% in U.S. crude futures earlier in the week.

Speaking from the White House, President Donald Trump said Iran is seeking a deal but added that Washington remains dissatisfied with the offers presented so far. He also stressed that the Strait of Hormuz should remain accessible to all countries.

Secretary of State Marco Rubio stated that the United States would give diplomacy “every chance to succeed” while reiterating that President Trump retains alternative options.

Oil prices remained volatile even after the White House denied reports that Iranian state television had obtained a draft proposal outlining an unofficial framework agreement between Washington and Tehran.

Reuters reported that the proposal would require Iran to restore commercial shipping traffic through the Strait of Hormuz to pre-conflict levels within one month.

Sector performance was mixed during Wednesday’s trading session. Airline stocks continued their recent rally, with the NYSE Arca Airline Index climbing 2%.

Telecommunications shares also performed well, as the NYSE Arca North American Telecom Index gained 1.6%.

Technology hardware, housing, and retail stocks also posted notable gains.

Meanwhile, oil service companies came under pressure alongside weaker crude prices, dragging the Philadelphia Oil Service Index down 3.3%.

Gold-related shares also moved sharply lower after a steep decline in bullion prices, with the NYSE Arca Gold Bugs Index falling 3.3%.

U.S. equity futures traded lower on Thursday, while oil prices advanced, after a fresh round of military strikes between the United States and Iran reignited concerns over stability in the Gulf and reduced optimism surrounding a possible peace agreement. Investors were also focused on upcoming U.S. inflation data closely watched by the Federal Reserve.

At 03:37 ET, futures tied to the Dow Jones Industrial Average were down 53 points, or 0.1%. S&P 500 futures declined 11 points, also down 0.1%, while Nasdaq 100 futures lost 99 points, equivalent to 0.3%.

The weaker tone followed a relatively positive session on Wall Street the previous day, when major indices managed modest gains amid lingering expectations that diplomatic talks between Washington and Tehran could still progress.

Analysts at Vital Knowledge said markets continue to price in the possibility that a resolution to the conflict may emerge soon. However, sentiment deteriorated after the White House rejected as “a complete fabrication” reports aired by Iranian state television regarding an alleged draft Memorandum of Understanding.

Consumer Shares Hold Up While Energy and Tech Stocks Lose Momentum

Earlier support for equities had come from softer Brent crude prices and stronger-than-anticipated earnings from retailers including Abercrombie & Fitch and Bath & Body Works.

Vital Knowledge analysts said those developments, together with what they described as “sanguine” commentary from companies attending a major investor conference, helped support consumer discretionary stocks.

At the same time, energy stocks came under pressure, while investors locked in gains from several high-performing technology shares that had rallied sharply in recent weeks.

Escalating Military Action Raises Concerns Over Ceasefire Durability

Geopolitical tensions intensified again after reports emerged that the U.S. military conducted additional strikes inside Iran on Wednesday following Iranian drone attacks against commercial shipping in the Strait of Hormuz.

According to the Wall Street Journal, citing officials familiar with the situation, U.S. forces destroyed a drone and targeted a drone-control facility near the Iranian port city of Bandar Abbas.

A U.S. official told Reuters that the operations were “measured, purely defensive and intended to maintain” the fragile ceasefire currently in place.

Iran’s Islamic Revolutionary Guard Corps later claimed responsibility for strikes against a U.S. military base and warned that any additional attacks would trigger retaliation.

Meanwhile, Kuwait’s military confirmed that it had intercepted incoming drones and missiles, ending a period of relative calm that had lasted for several weeks.

Oil Prices Advance as Supply Risks Remain Elevated

Efforts to secure a diplomatic solution to the conflict continued but failed to produce an immediate breakthrough, with negotiations still hindered by disagreements over Iran’s nuclear programme and tensions surrounding the Strait of Hormuz.

Against that backdrop, Brent crude climbed 2.8% to $96.95 per barrel. Although prices remained below the psychologically important $100 level, they continued to trade significantly above pre-conflict levels.

Disruptions around the Strait of Hormuz have fuelled concerns about global energy supplies, helping to drive oil prices higher and increasing fears of renewed inflationary pressure worldwide. Roughly one-fifth of global oil and liquefied natural gas shipments pass through the strategic waterway.

Investors Await Key U.S. Inflation Reading

Attention is now turning toward the release of the U.S. personal consumption expenditures (PCE) price index for April, one of the Federal Reserve’s preferred measures of inflation.

Economists expect annual headline PCE inflation to accelerate to 3.8% from 3.5%, while the monthly reading is forecast to ease to 0.5% from 0.7%.

Core PCE inflation, which excludes food and energy prices, is projected to edge up to 3.3% year-on-year while remaining unchanged month-on-month at 0.3%.

Recent remarks from Federal Reserve officials have highlighted growing divisions within the central bank over the future direction of interest rates, particularly amid concerns about the inflationary impact of rising energy costs.

Markets are increasingly pricing in the possibility that the Fed and other major central banks may need to resume rate hikes if inflation pressures continue to build.

Musk Clarifies Terms of SpaceX-Anthropic Computing Partnership

Separately, Elon Musk said Thursday evening that SpaceX’s agreement with artificial intelligence startup Anthropic to provide computing capacity is currently based on a short-term arrangement rather than a multi-year commitment.

Earlier disclosures from SpaceX had suggested the agreement would give Anthropic access to computing resources at the Colossus data centre through May 2029.

Responding to social media commentary, Musk said “SpaceX has not committed to leasing Colossus for years, although it’s possible that may be what happens.”

He added that the deal currently consists of a 180-day lease with a 90-day mutual cancellation clause thereafter. According to Musk, SpaceX specifically requested the shorter-term structure to preserve flexibility in case the company later requires additional internal computing resources.