US stock futures declined during European hours on Thursday, with Dow Jones futures falling 0.22% below 50,000, S&P 500 futures down 0.27% near 7,430, and Nasdaq 100 futures dropping 0.42% toward 29,250. This pullback was attributed to increased risk aversion stemming from uncertainty over US-Iran peace negotiations and hawkish signals from the Federal Reserve. US President Donald Trump stated that negotiations with Iran were in their final stages but warned that military actions would resume within days if Iran rejected his terms [1].
The Federal Open Market Committee (FOMC) Minutes from the April meeting, released on Wednesday, revealed that a majority of Fed officials warned that interest rates may need to rise if inflation remains above the 2% target. The minutes highlighted growing concerns within the Fed about inflation risks, particularly those driven by ongoing geopolitical conflict [1].
Despite Thursday's cautious tone, Wall Street posted strong gains on Wednesday, buoyed by falling oil prices and lower Treasury yields following President Trump's comments. The Nasdaq 100 led the rally with a 1.54% gain, followed by the Dow Jones up 1.31% and the S&P 500 advancing 1.08% [1].
In corporate news, NVIDIA reported a record-breaking first quarter with $81.62 billion in revenue and $58.32 billion in net income, driven by strong demand for its AI chips. The company also raised its dividend and announced an $80 billion stock buyback plan. However, shares dipped slightly in extended trading as investors expressed caution over forward guidance and rising competition [1]. Intuit Inc. posted strong third-quarter results with $8.6 billion in revenue, a 10% year-over-year increase, and raised its full-year guidance. This was offset by the announcement of a 17% workforce reduction, affecting about 3,000 positions, as part of a strategic shift toward AI integration and operational efficiency [1]. Analog Devices, Inc. reported a record second quarter with $3.62 billion in revenue, a 37% year-over-year increase, and announced a $1.5 billion acquisition of Empower Semiconductor to strengthen its AI infrastructure capabilities [1].
Looking ahead, Walmart is expected to report strong fiscal first-quarter results, with analysts forecasting a 3.85% increase in overall same-store sales and 4% growth in U.S. comps. Deere & Company is also set to release its second-quarter report, though it faces tougher market conditions [1].
CONCLUSION
US stock futures are under pressure due to geopolitical uncertainty and hawkish Fed signals, despite recent gains and strong corporate earnings from major companies like NVIDIA, Intuit, and Analog Devices. Investors remain cautious, balancing robust financial results with concerns over inflation, interest rates, and global tensions. Upcoming earnings from Walmart and Deere & Company will be closely watched for further market direction.