US stock futures were trading with modest gains in Friday’s session, 1 May, suggesting a pause in the rally that pushed Wall Street gauges to multiple record highs throughout April, with technology stocks doing the heavy lifting.
Futures tied to the S&P 500 gained 0.4%, while those linked to the Nasdaq-100 were flat. Dow Jones Industrial Average futures were down 0.3%.
Today’s muted moves came after a record-setting trading session, with the S&P 500 closing above the 7,200 mark for the first time to hit a fresh peak of 7,219, while the tech-heavy Nasdaq Composite rose to another all-time high of 27,488.
Alphabet led the way, rallying 10% after the owner of Google and YouTube reported quarterly profit that nearly doubled analysts’ expectations. However, Meta Platforms tumbled 8.7% after raising its capital expenditure target.
Doubts remain high among some investors about whether all the spending on artificial intelligence will generate enough profit and productivity to justify the massive outlays.
The surging crude oil prices and elevated tensions in the Middle East failed to halt the US stock rally in April, as the S&P 500 still finished the month with a 10% surge, marking its biggest monthly percentage gain since November 2020, while the Nasdaq Composite posted its strongest monthly advance since April 2020. The Dow’s monthly gain was its biggest since November 2024.
The conflict in the Middle East has now entered its third month, with no resolution in sight as both the US and Iran have failed to agree on each other’s terms, keeping pressure elevated on energy prices.
US President Donald Trump reaffirmed that the US would maintain its naval blockade of Iranian ports to intensify economic pressure. Iran’s supreme leader, Mojtaba Khamenei, also dampened prospects for a deal, pledging not to relinquish the Islamic Republic’s nuclear or missile capabilities and indicating that Tehran would retain control over the strait.
Meanwhile, reports suggested the US economy grew at a slower pace in the January-March quarter than economists had expected. At the same time, a key measure of inflation worsened in March as the war raised gasoline prices, reinforcing expectations that the Federal Reserve could keep interest rates on hold well into next year.
The European Central Bank and the Bank of England left interest rates unchanged on Thursday, following similar decisions this week by the Fed and the Bank of Japan.
Among individual stocks, Apple rose 3.3% in pre-market trading on Friday after reporting third-quarter sales growth above estimates. Roblox tumbled 24% after the video game company reported daily active users for the first quarter that missed the average analyst estimate. SanDisk is down 6.2% after third-quarter results.
Crude holds near multi-year highs
Crude oil prices continued to trade higher as shipping through the Strait of Hormuz remained constrained, fuelling fresh supply concerns.
Benchmark US crude held above $105 a barrel, while Brent crude, the international benchmark, edged back up to around $111 per barrel following Thursday’s wild swings on worries over a possible resumption of hostilities in the Middle East.
Brent had soared to a four-year high above $126 a barrel on Thursday after news platform Axios reported that Donald Trump would be briefed on potential fresh military strikes.
Oil prices have now touched nearly double the levels seen at the start of the year, raising concerns about a global economic slowdown and higher inflation as fuel costs continue to surge.
The International Energy Agency had earlier described the Iran conflict as one of the biggest energy supply shocks on record, warning that it could intensify inflationary pressures and weigh on the global growth outlook.
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