US stock futures on Friday, 17 April, indicated another positive start for Wall Street after key indices hit back-to-back record highs.
Investors assessed the prospects of renewed US-Iran negotiations and a potential long-term peace deal between the US and Iran, easing concerns over energy-driven inflation and rate hikes by the central banks.
Futures for the three key indices — the Dow Jones Industrial Average, the S&P 500, and the Nasdaq — were up between 0.1% and 0.2%. In the previous session, the S&P 500 notched a record high of 7,051.28, just a day after eclipsing its previous all-time high set in January, with financial and technology stocks leading the gains.
The Nasdaq 100 also hit another record high of 24,400. The small-cap segment is gaining ground, with the Russell 2000 rebounding 9.4% so far in April. The recovery rally has lifted the S&P 500 by 7.85% and the Nasdaq 100 by 11%.
The rally marks a sharp turnaround for the US stock market, where a sell-off through the end of last month had pushed the S&P 500 more than 9% below its peak. The Nasdaq 100, for its part, had entered a technical correction during the conflict, falling 12% from its record high.
Statements from US President Donald Trump on war developments have largely driven market sentiment over the past month. He recently suggested that the conflict in the Middle East could end soon, which has further boosted risk appetite and softened crude prices.
Trump said on Thursday that he is open to extending the two-week ceasefire in the Iran conflict, while Iran’s UN envoy noted that Tehran remains “cautiously optimistic” about negotiations with the US.
Hours earlier, Trump said that leaders of Israel and Lebanon had agreed to a 10-day ceasefire after officials from both countries met in Washington, raising hopes of easing supply disruptions.
Vested Finance stated that markets remain supported by momentum and liquidity flows, but at current levels, they are also more sensitive to news. With oil prices rising, bond yields firming up, and earnings reactions becoming more selective, the session could see a slightly cautious start, it added.
Crude oil prices slip after two-day gains
As optimism over an extended ceasefire grew, crude oil prices declined after rising for two straight days.
Brent crude, the international benchmark, was down 4% at $95.57 per barrel, though it has surged roughly 40% since the start of the Iran conflict in late February. US benchmark crude fell 4.2% to $90 a barrel.
The decline in crude oil prices has also improved the outlook for US Federal Reserve rate cuts and weighed on the US dollar, which is on track for a third consecutive weekly loss.
Stocks to watch today
Among individual stocks, Netflix shares fell 11% in pre-market trading after forecasting current-quarter earnings below expectations. On the earnings front, Netflix is likely to set the early tone as large-cap tech often reacts to its earnings, said Vested Finance.
Meanwhile, Alcoa shares dropped 4% after the aluminium producer reported earnings miss for the previous quarter.
Energy stocks could see continued strength if oil holds up, while travel-related names may remain under pressure due to rising fuel costs, opined the brokerage.
Among other stocks it deemed worth tracking are Dell Technologies, which has been gaining momentum on the back of AI-driven upgrades, and PepsiCo, which moved higher after steady results. On the flip side, Abbott Laboratories declined despite beating estimates, as guidance fell short.
(With inputs from agencies)
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