Dow Jones futures declined by 0.54% to near 49,400 during European hours on Thursday, with S&P 500 and Nasdaq 100 futures also falling 0.39% and 0.36% to below 7,150 and 27,000, respectively, ahead of the US market open [1]. The retreat in US index futures was attributed to stalled US-Iran peace efforts, which weighed on risk sentiment after reports that Iran fired on three ships in the Strait of Hormuz and escorted two into Iranian waters, escalating regional tensions. The White House stated that these seizures did not breach ceasefire terms [1].
Iranian parliament speaker and chief negotiator Mohammad Bagher Ghalibaf declared that reopening the strait would be 'impossible' while the US and Israel continue what he described as 'flagrant' ceasefire violations, including a US naval blockade. Meanwhile, President Donald Trump indicated that the current truce would remain in place indefinitely as Washington awaits a renewed peace proposal from Tehran [1].
Despite the geopolitical concerns, regular US trading on Wednesday saw the Dow Jones rise 0.69%, with the S&P 500 and Nasdaq 100 gaining 1.05% and 1.64%, respectively, both closing at fresh record highs. Market sentiment was supported by a strong earnings season, particularly among AI-linked companies and chipmakers such as Broadcom, AMD, and Micron, which posted notable gains [1].
On the corporate front, IBM reported earnings per share of $1.91, surpassing expectations of $1.87. Boeing shares climbed 5% after reporting a slower cash burn, Apple added 2.3%, and Tesla posted earnings per share of $0.41, in line with forecasts [1].
CONCLUSION
Geopolitical tensions between the US and Iran have led to a pullback in US index futures, reflecting increased market caution. However, strong corporate earnings and gains in technology and chipmaker stocks have recently buoyed sentiment, suggesting that market direction remains sensitive to both geopolitical developments and earnings performance.