US stock futures experienced a decline on Thursday as tensions escalated between the US and Iran. Following Iranian Supreme Leader Ali Khamenei’s directive that the country will not export its uranium enriched to near weapons-grade levels, concerns regarding the progress of peace negotiations emerged. Futures for the Dow Jones Industrial Average fell by 0.2%, with the S&P 500 experiencing a similar drop, while the tech-oriented Nasdaq 100 saw a decline of 0.4% after a positive day on Wall Street.
In the commodities market, oil prices saw an uptick in the early hours, with Brent crude climbing past $106 amid a deadlock in negotiations between the US and Iran. President Trump stated a resolution with Iran may be imminent, expressing willingness to wait a few days for Iran to consider the latest US peace proposal.
Investor focus also remained on Nvidia, which released its earnings after the market close on Wednesday. The tech company surpassed revenue and profit expectations, announcing a promising outlook for chip sales. However, the market response was subdued as investors anticipated more robust signs of demand. Consequently, Nvidia’s shares remained stable in early trading.
In corporate news, SpaceX recently submitted its S-1 registration statement to the Securities and Exchange Commission, providing a rare glimpse into its financial performance ahead of its investor roadshow planned for June.
As the earnings season continues, several major companies are set to report their results on Thursday, including Walmart, Ross Stores, Workday, and Zoom Communications.
### Walmart Q1 Earnings
Walmart shares decreased by 2% in premarket trading after the retail giant’s first-quarter results met analyst expectations, but the guidance for the second quarter appeared somewhat disappointing. The company reported a same-store sales increase of 4.1% in the US, exceeding the expected growth of 3.85%, driven by increased customer traffic and a 26% surge in e-commerce sales. Revenue grew to $177.8 billion—up 7.3%—which was above the anticipated $174.8 billion. Adjusted earnings per share remained in line with expectations at $0.66, and the results reflected gains across all product categories, particularly from higher-income shoppers.
### Oil Market Developments
Following a previous sharp decline, oil prices recovered slightly as President Trump noted the US is close to an agreement with Iran. Brent touched $106 per barrel, having dropped more than 5% earlier in the week. Despite fluctuating headlines surrounding US-Iran negotiations, oil prices have remained over 40% higher than they were before the conflict initiated in February. However, analysts, including Abu Dhabi National Oil Company’s CEO, caution that even a resolution may not fully restore oil flows in the region until well into 2027 due to substantial supply disruptions.
In summary, while the earnings season continues to unfold, geopolitical tensions significantly impact market sentiment, particularly regarding commodities like oil. Investors remain cautious as they monitor corporate performance and the evolving situation with Iran.
