US stock futures slide on Hormuz tensions as oil climbs above $96
Dow, S&P 500 and Nasdaq futures drop following second wave of US strikes on Iran, while Brent crude rises and Snowflake shares surge on AWS deal.
US stock futures declined on Thursday following a second wave of military strikes by the United States on Iran near the Strait of Hormuz. The Dow Jones Industrial Average futures fell 0.2%, the S&P 500 futures dropped 0.4%, and the Nasdaq 100 futures fell 0.8%. The retreat comes as investors await official updates on US-Iran negotiations, with tensions persisting over the reopening of the critical waterway.
Oil prices rose as hostilities highlighted the fragility of the ceasefire. Brent crude climbed above $96 a barrel, while West Texas Intermediate traded near $90. President Donald Trump stated he was not satisfied with the talks, and the White House denied an Iranian report suggesting Tehran and Oman would oversee the strait. Sticking points in the negotiations include Iran’s nuclear program and its desire to retain control over Hormuz, which remains subject to a double blockade.
Despite the geopolitical downturn, individual corporate results provided support. Snowflake shares surged more than 30% after reporting strong earnings and announcing a $6 billion deal with Amazon Web Services. Salesforce stock fell modestly in premarket trading despite beating earnings expectations, as investors remained concerned about AI disruption. The company had previously announced a $27 billion stock buyback in the last quarter to signal confidence in its business model.
In the retail sector, Best Buy shares jumped 8% after reporting first-quarter same-store sales growth of 2%, beating expectations. The growth was driven by Apple product launches and higher tax refunds. Meanwhile, Caesars Entertainment shares rose 1.8% on news of a $17.6 billion all-cash acquisition by Fertitta Entertainment, which includes a $31 per share offer and an $11.9 billion assumption of Caesars' debt.
Wall Street is also preparing for the release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index. The data will indicate whether rising prices are increasing pressure on the central bank to raise interest rates. Additional earnings reports expected include those from Costco Wholesale, Dell Technologies, Dollar Tree, and The Gap.
