Dow Jones Industrial Average futures rose on Thursday, with traders closely monitoring developments in the Middle East as negotiations advance toward a reopening agreement for the Strait of Hormuz. Wall Street is also digesting a heavy flow of corporate earnings reports.
As of this writing, Dow futures added 94 points, a gain of 0.2%. S&P 500 futures edged up 0.1%, while Nasdaq 100 futures slipped 0.6%. Sandisk shares dropped 9%, weighing on Nasdaq futures, after the storage company's fourth-quarter results failed to satisfy investors. Separately, AppLovin plunged 19% on a mixed quarterly performance, and Western Digital fell 14% after its first-quarter forecast disappointed investors, though its fourth-quarter results exceeded expectations.
Oil prices rose modestly as Iran and Oman near an agreement to reopen the Strait of Hormuz. According to a temporary deal, shipping through the strait would be free of charges or tolls, an Iranian government official told MS NOW. Deutsche Bank strategist Jim Reed wrote: "There have been multiple false dawns in this conflict. While details are becoming more concrete, the focus is shifting from whether a deal can be reached to what the final arrangement will look like, including unresolved issues such as whether Iran will ultimately be allowed to impose tolls on vessels using the strait."
Meanwhile, the first lock-up period for SpaceX shares is set to expire, releasing over 900 million shares into the market. The phased unlocking allows early investors a first opportunity to sell, potentially putting pressure on the stock price.
In Asia, Japan's Nikkei 225 closed 0.93% lower, while South Korea's Kospi index fell 4.58%. Australia's benchmark S&P/ASX 200 index gained 0.47%, and China's CSI 300 index ended 0.15% lower. European markets opened broadly higher on Thursday, with tech stocks stabilizing after a sell-off in Asian markets.
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