Geopolitical Developments

The United States and Iran exchanged air strikes for a second straight day. The U.S. struck multiple military targets in Iran, which Central Command (CENTCOM) described as “self‑defence” following the downing of a U.S. helicopter in the Strait of Hormuz. Iran retaliated with strikes against several U.S. bases and allies in the Gulf, with explosions reported in Kuwait, Bahrain and Jordan, though immediate confirmation was lacking. President Donald Trump warned Iran would “pay the price!!!” if it did not promptly accept a peace deal, signalling the possibility of further action.

U.S. Market Futures

By 03:13 ET (07:13 GMT) U.S. equity futures had edged higher, suggesting a tentative rebound after the previous session’s sharp slide. The Dow futures contract rose 215 points, or 0.4%, the S&P 500 futures gained 38 points, or 0.5%, and Nasdaq 100 futures climbed 230 points, or 0.8%. The prior day had seen the Dow Jones Industrial Average fall 1.9% (its worst day since October), the Nasdaq Composite drop 2%, and the S&P 500 retreat 1.6% to its lowest close in five weeks.

Inflation and Producer‑Price Context

A U.S. consumer‑price inflation gauge surged to its hottest pace in years, driven by a spike in energy prices linked to the Iran war. A separate producer‑price growth gauge was scheduled for release later on Thursday. Deutsche Bank analysts noted that fading prospects of a near‑term resolution revived concerns about stagflation, prompting bonds and equities to sell off across both sides of the Atlantic.

Oracle Earnings and Funding Plans

Oracle reported a quarterly top‑ and bottom‑line beat and lifted its annual adjusted profit‑per‑share guidance. Despite the earnings beat, the Austin‑based firm’s shares fell in extended trading after the company disclosed that it expects to raise $40 billion in financing during fiscal full‑year 2027 to fund its artificial‑intelligence and data‑center expansion. Vital Knowledge analysts described the release as “OK,” citing robust backlog growth and a cash performance that was not as poor as feared due to lower capex, but warned that heavy cash outflows to build AI‑related infrastructure would necessitate additional debt and equity.

Oracle’s strategic shift toward cloud‑computing infrastructure and AI‑focused data centres has drawn scrutiny over the amount of debt being raised to support these initiatives, even as its core database software and enterprise‑application revenues remain stable.

Super Micro Computer Market Reaction

Shares of Super Micro Computer plunged after the server maker announced a new equity raise of several billions of dollars to fund AI‑related infrastructure, underscoring analyst concerns that AI‑linked firms may struggle to finance the massive build‑out required for the technology.

Oil Price Movements

As of 03:30 ET, Brent crude futures for August delivery fell 0.6% to $92.59 per barrel, while West Texas Intermediate (WTI) futures declined 0.5% to $89.58 per barrel. Both contracts had previously advanced more than 2% in early Asian trading before giving back some gains. Tehran announced a halt to all vessel traffic through the Strait of Hormuz—a claim the U.S. military denied—contributing to the price retreat. Oil had settled nearly 2% higher in the preceding session.

European Central Bank Rate Outlook

The European Central Bank (ECB) was expected to raise its key deposit rate to 2.25% from 2.0% at the conclusion of its two‑day meeting, aiming to curb inflation that is now above 3%, well over the ECB’s 2% target. The rate hike would represent the first increase in almost three years. Analysts highlighted weak growth signals across the 21‑member Eurozone, including a soft batch of German factory‑order data for April, raising concerns that manufacturing activity could deteriorate after earlier inventory‑building phases.

Analyst Commentary

Deutsche Bank warned of renewed stagflation risk, while ING analysts highlighted the weak German factory‑order data and the potential for further manufacturing slowdown. Vital Knowledge emphasized Oracle’s need for substantial financing to meet AI‑related infrastructure demands.