U.S. stock futures moved lower early Thursday after both the S&P 500 and Nasdaq Composite closed at fresh record highs in the previous session.
S&P 500 futures fell 0.63%, while Nasdaq 100 futures dropped 0.71%. Futures tied to the Dow Jones Industrial Average declined by 353 points, or 0.71%.
In after-hours trading, some major stocks saw sharp moves. IBM and ServiceNow dropped around 6% and 13%, respectively, following their latest earnings reports. Tesla initially gained on stronger-than-expected results but later slipped about 2% after CEO Elon Musk warned that capital expenditures would rise significantly as the company expands into AI-driven self-driving technology and humanoid robots.
During Wednesday’s regular session, both the S&P 500 and Nasdaq closed at record levels after President Donald Trump extended the U.S. ceasefire with Iran. The S&P 500 rose 1.05%, while the Nasdaq gained 1.64%. The Dow Jones Industrial Average added 340.65 points, or 0.69%.
Trump stated that the ceasefire extension was necessary due to instability within Tehran’s government. However, geopolitical tensions remain elevated. Reports suggest Iran declined to participate in upcoming peace talks, prompting Vice President JD Vance to pause his planned visit. Additionally, Iran’s navy reportedly seized two container ships in the Strait of Hormuz, adding to market uncertainty.
Despite these risks, investor sentiment has been supported by a strong earnings season. Of the 87 S&P 500 companies that have reported so far, 81% have exceeded earnings expectations, while 76% have beaten revenue forecasts.
Key companies including Honeywell, American Express, Blackstone, American Airlines, and Lockheed Martin are set to report earnings Thursday. Investors will also monitor the preliminary April S&P Global PMI data for insights into manufacturing and services activity.
In Asia, markets followed Wall Street’s momentum. Japan and South Korea stocks reached record highs, driven by optimism around the ceasefire extension and strong corporate earnings. Japan’s Nikkei 225 briefly touched an all-time intraday high of 60,013.98 before easing 0.31% on profit-taking.
