US futures dip on Iran tensions and Nvidia caution; quantum computing stocks surge
Dow and S&P 500 futures fall 0.2 per cent as Brent crude nears $106 a barrel, while Trump administration grants lift quantum computing shares.
US stock futures declined in premarket trading on Thursday, with the Dow Jones Industrial Average and S&P 500 futures both falling 0.2 per cent, while the Nasdaq 100 dropped 0.4 per cent. The sell-off followed a directive from Iran’s supreme leader requiring enriched uranium to remain within the country, casting doubt on ongoing peace talks between Washington and Tehran. Oil prices rose in response to the geopolitical stalemate, with Brent crude nearing $106 a barrel and West Texas Intermediate hovering around $99.
Investors continued to digest Nvidia’s earnings report, which beat expectations on both revenue and profit but lacked strong signals regarding future demand. Consequently, Nvidia shares remained flat in early trading. The tech giant’s results came amid a broader earnings season, with Walmart also reporting on Thursday. Despite beating first-quarter revenue estimates with a 7.3 per cent rise to $177.8 billion, Walmart shares fell 2 per cent in premarket trading due to a weaker second-quarter outlook.
In the energy sector, price volatility persisted as President Donald Trump suggested the US was in the “final stages” of a resolution with Iran. While Trump indicated willingness to wait a few days for Iran to review a peace proposal, conflicting headlines have buffeted oil prices, which remain more than 40 per cent higher than at the start of the conflict in late February. Abu Dhabi National Oil Co Chief Executive Sultan Al Jaber noted that even if the conflict ended immediately, Middle East oil flows would not fully recover until well into 2027.
Conversely, shares of several quantum computing companies surged following reports that the Trump administration is awarding $2 billion in grants in exchange for equity stakes. According to the Wall Street Journal, the Commerce Department will provide a $1 billion package to IBM and $375 million to GlobalFoundries. D-Wave Quantum, Rigetti Computing, and Infleqtion are each set to receive $100 million, while Diraq could receive $38 million. The news sent IBM shares up 6 per cent, GlobalFoundries up 15 per cent, D-Wave up more than 16 per cent, and Rigetti up 14 per cent.
Other market data released on Thursday showed initial jobless claims rising to 209,000 for the week ended May 16, up from the previous week’s revised tally of 212,000. The four-week moving average of initial claims fell to 202,500 from 204,000. Meanwhile, SpaceX filed its S-1 registration statement with the Securities and Exchange Commission, offering a public view into its financials ahead of a roadshow with investors planned for June.
