US futures rise on Iran strike hopes as Oracle shares sink on cloud miss
Dow, S&P 500 and Nasdaq futures climb following swift US military action in Iran, while tech giant faces headwinds from capex spending and weaker cloud revenue.
US stock futures advanced on Thursday, offering a rebound from recent market turbulence as investors weighed the implications of a fresh round of US military strikes on Iran. Futures attached to the Dow Jones Industrial Average and the S&P 500 both rose 0.8%, while Nasdaq 100 futures climbed more than 1%. The rally followed reports that the US military had completed its latest strikes swiftly, prompting hopes among traders that the conflict might be nearing a resolution.
The military action came after President Donald Trump criticised stalled negotiations and vowed retaliation following the downing of a US Army AH-64 Apache helicopter over the Strait of Hormuz. Although Iran’s Revolutionary Guard announced the closure of the vital shipping chokepoint to all vessels, oil prices eventually pulled back by roughly 1% after reports emerged that President Trump had spoken directly with Iranian leaders.
In corporate news, Oracle shares fell approximately 10% after the technology giant reported fourth-quarter earnings that beat analyst expectations for profit and revenue but missed targets for cloud sales. The company reported earnings per share of $2.11 on revenue of $19.18 billion, surpassing consensus estimates. However, cloud business revenue came in at $9.91 billion, below the $9.99 billion forecast, while capital expenditure exceeded expectations.
Oracle also announced plans to raise roughly $40 billion through a combination of debt and equity sales to fund artificial intelligence spending. The move raised concerns among investors regarding the company’s growing debt levels, overshadowing the positive earnings beat and leading to a significant decline in the stock price during Thursday morning trading.
Wholesale inflation data released by the Bureau of Labor Statistics added to the macroeconomic backdrop, showing producer prices rising 1.1% month-on-month in May, well above the 0.7% increase expected by economists. On a year-on-year basis, headline wholesale prices rose 6.5%, exceeding forecasts of 6.4%, while core wholesale inflation came in cooler at 4.9%.
Market volatility was further reflected in commodity markets, where gold prices whipsawed sharply. Bullion initially dropped near $4,000 an ounce before rising as much as 1.1% following the news of the US strikes. Meanwhile, the broader market has seen significant pressure from megacap technology stocks, with the "Magnificent Seven" erasing roughly $2 trillion in market value in June alone.
