Nasdaq futures indicated a significant downturn on Thursday, coinciding with a bustling earnings day, as technology stocks spearheaded the declines. Meanwhile, crude prices surged following reports indicating that the U.S. and Israel intend to resume military actions against Iran. Futures for the Nasdaq 100, S&P 500, and Dow Jones Industrial Average experienced declines of 1.7%, 1%, and 0.5%, respectively. Yesterday, the major U.S. indexes experienced an upward trajectory, primarily driven by substantial increases in technology stocks amidst a bustling day of earnings announcements. The benchmark S&P 500 experienced an increase of 0.7%, marking its third consecutive day of positive performance.
Chip and other AI-related stocks experienced a sell-off early Thursday. Roundhill’s Memory ETF dropped 4% before the bell, pulled lower by components Micron Technology, Sandisk, Seagate Technology, and Western Digital, which is slated to report results after markets close today. The broader iShares Semiconductor ETF experienced a decline of approximately 3.5%, influenced by the performance of companies such as Advanced Micro Devices, Intel, and Nvidia. The Roundhill Magnificent Seven ETF, which tracks the Magnificent Seven mega-cap tech stocks, was about 2% lower premarket, with a 3.5% drop in Tesla shares following the EV maker’s earnings report weighing. Meta Platforms, which also issued quarterly results yesterday afternoon, pulled back 2.5%.
Shares of SpaceX were down 2.5% before the bell. The space, AI, and social media company led the Nasdaq 100 with an 8% advance Wednesday following the announcement of its first quarterly profit. CEO Elon Musk indicated that the board and Tesla’s formed committees to explore the possibility of a merger. Crypto-tied stocks, including Strategy, Mara Holdings, Coinbase Global, and Robinhood Markets, experienced a significant decline as the price of bitcoin dropped to approximately $81,700 from overnight peaks near $84,800. Major corporations set to disclose their earnings prior to the market’s opening today encompass Procter & Gamble, Lockheed Martin, Honeywell International, Union Pacific, Norfolk Southern, Spotify Technology, and Comcast.
Oil prices surged following reports of impending military strikes by the U.S. and Israel against Iran, coupled with a rise in assaults by Iran-backed Houthi rebels targeting Saudi Arabia. U.S. benchmark West Texas Intermediate crude futures experienced an increase of 2.2%, reaching $99.30 per barrel in recent trading. Brent crude futures, the international benchmark, experienced an increase of 2.8%, reaching nearly $112. The 10-year Treasury yield decreased to approximately 5.05%, reflecting a decline of eight basis points from the previous day’s close. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, remained relatively stable at 101.80. Gold futures declined by 1.7%, settling at $4,080 per ounce.
