U.S. stock futures were narrowly lower Thursday morning as investors balanced resilient technology earnings against another rise in oil prices and Treasury yields. At the latest premarket check, S&P 500 futures were down 0.1%, Nasdaq futures were down 0.2%, and Dow futures were little changed. The restrained index moves mask a more forceful cross-asset message: the Iran conflict is keeping energy prices elevated, while higher bond yields are tightening financial conditions ahead of important U.S. services data and Friday’s employment report. Associated Press
Oil and rates frame the opening setup
Iran fired at Kuwait on Thursday in retaliation for U.S. bombardments, according to the Associated Press, extending a conflict that intensified after U.S. forces struck Iranian rocket launchers on an island in the Strait of Hormuz. That escalation remains the clearest macro risk for markets because the strait is a critical energy route and disruptions can quickly feed into fuel costs, inflation expectations, and consumer sentiment. Associated Press
Brent crude rose 1.8% to $97.33 a barrel in early trading, while West Texas Intermediate gained 2.1% to $92.92. U.S. crude was up roughly 11% for the week. The confirmed fact is that oil is rising; the market inference is that a sustained move near or above $100 could complicate the Federal Reserve’s inflation outlook and pressure rate-sensitive equities. Energy producers may benefit from higher realized prices, but airlines, transports, chemicals, and consumer-facing businesses could face higher costs. Associated Press
Treasury yields reinforce that caution. The 10-year yield was near 4.77% early Thursday after reaching 4.81% Wednesday, its highest level since 2023. The two-year yield was around 4.36% after touching 4.41% Wednesday, the highest in more than a year and a half. Those moves raise the discount rate applied to future corporate earnings and may limit how much strong technology results can lift the broader market. Associated Press
Global markets are mixed
European trading was subdued: Germany’s DAX slipped 0.1%, France’s CAC 40 fell 0.3%, and Britain’s FTSE 100 gained 0.2%. Asian markets finished mixed. The regional split is consistent with investors treating the energy shock unevenly: exporters and commodity-linked companies may find support, while oil importers and rate-sensitive sectors face a more difficult setup. Associated Press
Wednesday’s U.S. session provided a firmer handoff. The Dow gained 0.6% to 53,061.95, the S&P 500 advanced 0.5% to 7,666.60, and the Nasdaq rose 0.5% to 26,217.83. Nvidia climbed 3%, while the Russell 2000 gained 1.1%, showing that participation extended beyond mega-cap technology. Chevron added 0.3% after confirming an expansion in Venezuela, a corporate development tied directly to the shifting geopolitical and regulatory energy backdrop. Associated Press
AI earnings deliver strong numbers but selective reactions
Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% from a year earlier, and non-GAAP diluted earnings of $3.32 per share. AI semiconductor revenue reached $16.7 billion, rising 221% year over year and 54% sequentially. The company guided fiscal fourth-quarter revenue to approximately $34.8 billion and non-GAAP operating income to about 66% of projected revenue. These are confirmed company figures; any premarket weakness would indicate that investor expectations were even more demanding, not that the reported growth was weak. Broadcom investor relations
Hewlett Packard Enterprise also posted record fiscal third-quarter revenue of $12.2 billion, up 34% year over year, with non-GAAP EPS of $1.11. Networking revenue rose 74.9% to $2.9 billion, while Cloud & AI revenue increased 25.4% to $9.0 billion. HPE raised its full-year revenue-growth outlook to 34%–37% and projected fourth-quarter revenue of $13.9 billion to $14.8 billion. The results confirm strong enterprise infrastructure demand, but investors will scrutinize margins, supply availability, and the integration of Juniper Networks. HPE
Analyst revisions following these reports could amplify individual moves, but the broader lesson is selectivity: companies are being judged not only on headline beats, but also on guidance and the durability of AI-linked revenue.
Today’s economic calendar
The U.S. calendar began at 8:30 a.m. EDT with initial jobless claims, the advance goods-trade report, revised productivity and unit-labor-cost data, and the trade balance. The Institute for Supply Management’s services index is due at 10:00 a.m., followed by the New York Fed’s Weekly Economic Index at 11:30 a.m. Federal Reserve Bank of New York calendar
The day’s data matter because markets are weighing two competing inflation forces: potentially softer domestic demand and a renewed energy shock. Strong services activity or firm labor costs could keep yields elevated; weaker readings could offer bonds relief, though they would also raise growth questions.
Friday’s August employment report is the next major catalyst. The payroll, unemployment-rate, and wage figures will help shape expectations for the Fed’s next policy steps. Federal Reserve Bank of New York calendar
What to watch today
- Oil: Whether Brent holds near $100 and whether fresh Strait of Hormuz headlines add a larger geopolitical premium.
- Rates: Whether the 10-year Treasury yield retests Wednesday’s 4.81% high.
- ISM services: The 10:00 a.m. report’s activity, prices, and employment components.
- AI leadership: Whether Broadcom and HPE results support the semiconductor and infrastructure groups despite demanding valuations.
- Breadth: Whether small caps can extend Wednesday’s outperformance as borrowing costs remain elevated.
- Friday’s jobs report: Positioning may become more cautious into the close ahead of the week’s most important U.S. data release.
Disclaimer: This article provides general market information and commentary. It is not personalized financial, investment, tax, or legal advice. Markets involve risk, and readers should conduct their own research or consult a qualified professional before making investment decisions.
