S&P 500 and Nasdaq Futures Push Higher on AI Momentum Despite Middle East Tensions

Key Takeaways

• Nasdaq 100 futures climbed 0.7%, S&P 500 futures gained 0.2%, Dow futures remained essentially unchanged
• Overnight military exchanges between US and Iran failed to dampen market sentiment significantly
• SK Hynix prepares for Thursday pricing with IPO demand reaching 7x available allocation
• Crude oil prices retreated modestly despite continued Middle East hostilities, Brent down to $77.75
• Pepsi quarterly results revealed consumer spending pullback amid economic uncertainty

US equity futures advanced during Thursday’s pre-market session as market participants set aside concerns over escalating US-Iran military actions and refocused on artificial intelligence opportunities.

The Nasdaq 100 futures contract rose 0.6%, while S&P 500 futures increased 0.2%. Dow futures showed minimal movement, edging up less than 0.1%.

Thursday’s gains represent a reversal from Wednesday’s turbulent trading. The Dow Jones Industrial Average plummeted nearly 600 points following President Trump’s declaration that the Iran ceasefire had concluded, triggering a spike in energy markets.

Military actions continued through the night. American forces conducted airstrikes against 90 Iranian installations. Iran retaliated with strikes targeting US-allied nations throughout the Middle East region.

Nevertheless, market sentiment showed signs of stabilization. Citi’s Scott Chronert characterized the move as a “short-term reversal,” noting Trump’s ongoing commitment to resolving the confrontation.

Oil prices moderated during Thursday’s early trading. Brent crude declined 0.4% to $77.75 per barrel while West Texas Intermediate dropped 0.3% to $73.26 per barrel.

Additionally, the US government terminated a temporary exemption on Iranian oil sanctions, which had contributed to Wednesday’s crude price surge.

Memory Chip Maker’s Nasdaq Listing Draws Strong Interest

Market focus is pivoting toward SK Hynix’s anticipated Nasdaq listing. The South Korean semiconductor manufacturer plans to finalize its US IPO pricing Thursday, with shares expected to begin trading Friday.

Subscription demand has reached seven times the available share count, demonstrating robust investor interest in AI-related semiconductor opportunities.

This listing follows recent volatility in chip equities that shook confidence in artificial intelligence investments. Market watchers are evaluating whether the IPO can reinvigorate sector momentum.

The 10-year Treasury yield decreased 1 basis point to 4.57%. The US dollar weakened 0.1% versus a currency basket as investors reduced safe-haven positioning.

Consumer Behavior and Economic Indicators

Pepsi released quarterly earnings revealing American consumers moderating discretionary spending. While revenue exceeded analyst projections, the figures highlighted increasing financial constraints stemming from economic volatility.

Weekly unemployment claims figures are scheduled for Thursday release and may shape interest rate expectations moving forward.

Gold recovered above the $4,100 threshold but confronts headwinds from a hawkish Federal Reserve posture. Bitcoin registered modest gains despite geopolitical turbulence, reacting to recently published Fed meeting minutes.

European equity markets opened higher as technology and financial sector shares rebounded. South Korea’s technology sector also advanced, with market observers predicting an extended semiconductor growth cycle.

As of Thursday’s pre-market session, Nasdaq 100 futures traded at 29,741.50 and S&P 500 futures stood at 7,545.

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