US futures rise as investors await PPI data amid Iran tensions
US stock futures rebounded on Thursday following the previous session's decline driven by Iran tensions. Investors await May PPI data and jobless claims. Oracle dropped on margin guidance, while Visa rose on an OpenAI partnership.
*this image is generated using AI for illustrative purposes only.
U.S. stock futures rose on Thursday, with the Nasdaq 100, S&P 500, and Dow Jones indices advancing, as investors looked past escalating tensions with Iran and focused on upcoming economic data. The market recovery follows a session where the S&P 500 fell 1.62% to close at 7,266.99, its steepest decline in weeks, driven by renewed hostilities in the Middle East and weakness in semiconductor stocks. Investors are now awaiting the release of May's producer price index (PPI) and weekly jobless claims for further cues on inflation and the health of the economy.
Market Drivers and Geopolitics
Middle East tensions escalated significantly as the U.S. and Iran traded direct military strikes, following warnings from President Donald Trump that Tehran would "pay the price" for stalled peace talks. The renewed hostilities have disrupted regional stability, prompting neighboring countries like Kuwait to temporarily close their airspace. Despite these geopolitical risks, market sentiment improved in premarket trading, supported by expectations that the Federal Reserve will keep interest rates unchanged in June. The CME Group's FedWatch tool indicates a 98.3% likelihood of rates remaining steady.
Futures Performance
Major indices showed strength in premarket trading, indicating a rebound from Wednesday's losses.
| Index | Performance (+/-) |
|---|---|
| Dow Jones | 0.68% |
| S&P 500 | 0.79% |
| Nasdaq 100 | 1.22% |
| Russell 2000 | 1.41% |
The SPDR S&P 500 ETF Trust (NYSE: SPY) rose 0.81% to $731.39, while the Invesco QQQ Trust ETF (NASDAQ: QQQ) advanced 1.38% to $703.29.
Stocks in Focus
Several stocks made significant moves ahead of the opening bell. Oracle Corp. (NYSE: ORCL) dropped 8.87% in premarket trading despite better-than-expected fourth-quarter results, as its remaining performance obligations rose and the CFO predicted lower gross margins for fiscal year 2027. Conversely, Visa Inc. (NYSE: V) gained 0.37% following a partnership announcement with OpenAI for AI agent payments. CoreWeave Inc. (NASDAQ: CRWV) was up 1.35% after announcing its intention to offer $3.5 billion in senior notes due 2032. Oxford Industries Inc. (NYSE: OXM) fell 6.61% after reporting mixed first-quarter results and narrowing its sales outlook for FY2026.
Economic Data and Analyst Views
Investors are closely monitoring initial jobless claims for the week ending June 6 and May's PPI data, both due before the opening bell. Economists polled by Dow Jones expect the PPI to show wholesale inflation rising 0.7% month-over-month, a decrease from April's 1.4% increase. BlackRock maintains an overweight stance on U.S. equities, citing contained damage to global growth from the Middle East conflict and strong earnings expectations, particularly in technology and AI beneficiaries. However, the firm warns of persistent macro challenges and sticky price pressures, advising investors to build portfolios around specific exposures rather than traditional asset class labels.
How might sustained Middle East hostilities impact energy prices and inflation expectations in the coming months?
Could the Federal Reserve's stance on interest rates shift if upcoming PPI and jobless claims data deviate significantly from expectations?
Will Oracle's lowered margin guidance for fiscal 2027 signal broader profitability challenges for the cloud and AI infrastructure sector?
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