U.S. stock futures edged higher on Thursday after a period of choppy trading triggered by a new round of U.S.–Iran strikes. By 02:53 ET, Dow futures rose 82 points (0.2%), S&P 500 futures gained 21 points (0.3%) and Nasdaq 100 futures added 149 points (0.5%). The previous session saw the Dow Jones Industrial Average fall 1.1%, the S&P 500 decline 0.3%, while the Nasdaq Composite ticked up 0.2%.
President Donald Trump stated that he believed the cease‑fire framework with Iran was "over," prompting market nerves, though technology stocks, notably Nvidia, helped limit the downside after reports that China may soon permit domestic purchases of Nvidia’s H200 AI chip. Analysts noted that the Federal Reserve’s June minutes contained a "fairly dovish tone" on monetary policy despite lingering concerns about energy‑driven price pressures.
The U.S. Central Command reported that fresh U.S. strikes hit roughly 90 Iranian targets, including air defenses and missile‑drone storage sites, aiming to impair Iran’s ability to threaten commercial vessels in the Strait of Hormuz. Iran retaliated with strikes on U.S. bases in Kuwait and Bahrain and warned of further attacks on American sites in the Gulf if Washington escalates.
Against this backdrop, Brent crude futures, the global oil benchmark, were trading just under $78 a barrel, down 1.0% to $77.26 by 03:42 ET, yet still above the roughly $71 level seen before the latest attacks. The market remains sensitive to potential disruptions in the Strait of Hormuz, a conduit for about one‑fifth of global oil and LNG shipments. Earlier in the conflict, crude prices briefly spiked above $110 a barrel.
In corporate news, PepsiCo is scheduled to release its quarterly earnings before the opening bell. The company reaffirmed its annual targets for the second time this year, while CFO Steve Schmitt warned that the "macroeconomic environment has become more volatile and uncertain because of ongoing geopolitical conflicts." Schmitt did not rule out price hikes to offset higher energy and raw‑material costs, describing such moves as a last resort. PepsiCo shares have risen roughly 0.2% year‑to‑date.
Separately, China reported that June consumer price inflation (CPI) rose 1.0% year‑on‑year, slightly below expectations of 1.1% and down from May’s 1.2% gain, while monthly CPI fell 0.3% versus an expected 0.2% decline. Producer price inflation (PPI) accelerated to a 4.1% year‑on‑year increase, matching forecasts and marking the strongest rise since July 2022. Output prices fell across most industries, though electronics saw notable price gains due to memory‑chip shortages linked to AI demand.