U.S. futures advanced early Thursday following an announcement that American strikes against Iran had concluded. This comes as markets attempt to recover from sharp declines triggered by heightened geopolitical tensions and volatility in technology shares.
At 4:20 p.m. (Bangkok Time), contracts tied to the Dow Jones Industrial Average gained 0.68%, while S&P 500 futures rose 0.75%. The Nasdaq 100 futures added 1.16%.
These moves followed a turbulent Wednesday when the Dow slid 953.33 points, or 1.87%, the S&P 500 declined 1.62%, and the Nasdaq Composite lost 1.98%. The sell-off was fueled by ongoing concerns over conflict in the Middle East and renewed weakness in technology stocks, particularly after heavy losses in semiconductor shares.
Oracle’s announcement to raise $20 billion in fresh capital through both equity and debt for its artificial intelligence expansion led to a drop of over 11% in its shares during after-hours trading. Oracle’s share price in pre-market on Thursday dropped 7%.
The U.S. Central Command reported late Wednesday that it had carried out further “self-defense strikes” against Iran on President Donald Trump’s orders. President Trump earlier told the press that Iran would face significant consequences for stalled diplomatic talks, referencing U.S. airstrikes conducted on Tuesday, which officials described as a response to the recent shoot-down of an Apache helicopter.
These developments contributed to investor uncertainty and increased volatility, with equities retreating and crude prices climbing. The situation in the Strait of Hormuz, which remains closed, has added to concerns over the prolonged disruptions in oil flow. Sentiment was further dampened after fresh inflation data indicated accelerating price gains.
Looking ahead, investors are awaiting Thursday’s release of the Producer Price Index, a key inflation gauge following May’s strong consumer price data. Market participants are also set to review initial jobless claims for the week ended June 6, seeking additional signals about the state of the labor market.
