US stock futures slipped Thursday morning, pointing to a pause after Wall Street’s record-setting run, as geopolitical jitters and earnings-led volatility crept back into sentiment.
Futures tracking the S&P 500 and Nasdaq 100 fell about 0.5% each, while contracts tied to the Dow Jones Industrial Average dropped nearly 0.7%, indicating investors may lock in gains following the previous session’s rally.
The cautious tone comes despite a strong earnings backdrop, with corporate America continuing to outperform expectations. Still, markets are being pulled in multiple directions as fresh results trigger sharp stock-specific moves.
Among key laggards, IBM and ServiceNow slid sharply in premarket trade, even as broader earnings trends remain upbeat. Meanwhile, Tesla reversed early gains to trade lower after CEO Elon Musk flagged a significant jump in capital expenditure tied to its AI and robotics ambitions—raising concerns around near-term cash flows.
On the flip side, Netflix edged higher after announcing a massive $25 billion share buyback, while Helix Energy Solutions gained on merger news. Honeywell, however, declined after issuing a softer-than-expected outlook despite an earnings beat.
Geopolitics remain firmly in focus. Despite US President Donald Trump extending the ceasefire with Iran, peace talks appear to have stalled, with both sides hardening positions. Reports of ship seizures in the Strait of Hormuz and the absence of Iranian negotiators have kept tensions elevated, adding a layer of uncertainty to global markets.
Oil prices extended their rally for a fourth straight session amid supply concerns, with Brent crude climbing past $100 per barrel, adding to inflation worries already weighing on investor sentiment.
Also read: Closing bell | Nasdaq, S&P 500 hit record highs as ceasefire extension, earnings boost Wall Street
Even as macro risks persist, markets are finding support from resilient corporate performance. A majority of companies reporting so far have beaten both earnings and revenue estimates, reinforcing confidence that businesses are navigating geopolitical and economic headwinds better than expected.
Investors now turn to a fresh batch of earnings from companies like American Express, Blackstone, and American Airlines, alongside key economic data, including the preliminary S&P Global PMI readings for April, which could offer further clues on how deeply the ongoing West Asia tensions are impacting economic activity.
