US Futures Rise on Tech Earnings and Hopes for Iran Deal as Oil Slides
Dow, S&P 500 and Nasdaq futures tick higher as investors digest strong corporate results and await a response from Tehran regarding a proposed peace framework.
US stock futures for the Dow Jones Industrial Average, S&P 500 and Nasdaq edged higher ahead of the market open, buoyed by optimism surrounding a potential agreement to end the conflict between Washington and Tehran. The rally was further supported by robust technology sector earnings and a significant drop in crude oil prices as markets awaited Iran's response to a US proposal to reopen the Strait of Hormuz.
Contracts on the S&P 500 and Nasdaq 100 rose roughly 0.2 per cent and 0.1 per cent respectively, following record-high closes for the tech-exposed benchmarks. The Dow Jones Industrial Average futures moved up 0.3 per cent. Brent crude futures fell below the $100 a barrel mark, shedding nearly 4.8 per cent to trade near $96, while US WTI crude shed 5.2 per cent to around $90 per barrel. The decline in energy costs helped spur a rally in gold, which climbed as inflation concerns appeared to ease.
Corporate earnings provided a lift to market sentiment, with strong performance from major names like McDonald's beating first-quarter estimates. However, mixed signals emerged from the semiconductor sector; shares in Arm initially rose on upbeat revenue forecasts but sank in premarket trade due to concerns regarding a lack of chip supply. The week also brings reports from Shake Shack and Papa John's before the bell, marking the start of another busy day of results.
On the data front, initial jobless claims rose to 200,000 for the week ended May 2, slightly higher than the economist consensus of 205,000. The figure surpassed the previous week's revised tally of 190,000. Despite this uptick, the four-week moving average of initial claims fell to 203,250. Continuing claims ticked down to 1.76 million, though economists had been looking for an increase to roughly 1.8 million.
In a move that could reshape regulatory reporting, SEC Chair Paul Atkins introduced a proposal allowing public companies to file a new Form 10-S every six months instead of the traditional quarterly Form 10-Q. While intended to streamline disclosures, some strategists warn that less frequent fundamental data could lead to market inefficiencies and make analyst models more susceptible to shorter-term macroeconomic influences.
Elsewhere in the markets, the semiconductor rally continues to drive valuations, with the Philly Semiconductor Index sitting 56 per cent above its 200-day moving average. Meanwhile, space analytics firm HawkEye 360 raised $416 million in its US IPO, valuing the company at roughly $2.42 billion. Looking ahead, bankers on Wall Street are projected to see significant pay increases in 2026, with IPO and M&A bankers potentially seeing jumps of up to 20 per cent.
