US equity index futures are trading lower on Thursday, 23 April, a day after the S&P 500 and Nasdaq Composite registered fresh record highs. Sentiment turned negative as crude oil prices reclaimed the triple-digit mark, with hopes of Iran participating in a second round of peace talks gradually fading.
Futures tied to the S&P 500 fell about 0.5%, while Dow Jones Industrial Average futures dropped 354 points, or 0.7%. The technology sector, which has been performing well in recent sessions, is also showing signs of a negative start, with Nasdaq Composite futures down 0.5%.
The S&P 500 and the tech-heavy Nasdaq finished at record levels on Wednesday following Donald Trump’s unilateral ceasefire extension in the Iran conflict. Oil resumed its upward climb after Iran challenged the fragile truce by seizing two cargo ships in the Strait of Hormuz.
Both Iran and the US are blocking the Strait of Hormuz to gain leverage during the extended ceasefire. The focus now is on whether talks can resume and whether the two sides can reach an agreement, especially as the closure of the key waterway keeps energy prices elevated, risking higher inflation and weighing on economic growth.
Iranian officials have reportedly stressed that no decision has been made yet on whether to take part in a second round of negotiations in Islamabad, citing alleged US violations of the ceasefire, including the naval blockade.
The Iranian president said that violations of the ceasefire by the US and the naval blockade remain the main obstacles to talks.
Meanwhile, tensions in the Middle East are also prompting the US central bank to delay rate cuts. The Federal Reserve is expected to wait at least six months before cutting interest rates this year, according to a Reuters poll of economists, as war-driven energy shocks reignite already elevated inflation.
US stocks have staged a strong comeback recently, recovering all of their war-driven losses, led by a sharp revival in technology stocks. The Nasdaq has jumped 13.5% so far in April, supported by better-than-expected earnings from tech companies. The S&P 500 has regained 9.33%, while the Dow Jones has also experienced a recovery.
Brent crude reclaims $100 level
Amid renewed fears of supply disruption, crude oil prices have extended their winning run for the fourth straight session. In today’s session, Brent crude surged $4.24 a barrel to $106.15, while the US benchmark crude advanced $4.29 to $97.25 per barrel.
The ongoing conflict has disrupted oil transport through the Strait of Hormuz—a vital waterway that is typically open to international shipping—pushing prices sharply higher in recent sessions.
On the supply side, EIA data revealed declines in US inventories across key refined products, pointing to solid demand from both domestic consumption and export markets.
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