en.Wedoany.com Reported - U.S. stock futures rose in pre-market trading on Thursday, with S&P 500 futures up 0.6%, Dow Jones Industrial Average futures edging up 0.2%, and Nasdaq futures gaining 1.3%, recovering most of the losses from the previous day when markets speculated that the Federal Reserve might raise interest rates this year to curb persistent inflation.
Oil prices continued to decline after the US and Iran signed a preliminary agreement to end the war. Brent crude futures fell $1.19 to $78.36 per barrel, still above the pre-war level of around $70 but well below the over $100 price seen weeks ago; US benchmark crude fell $1.56 to $74.45 per barrel. The agreement opens a 60-day negotiation window to reach a final deal on the future of Iran's nuclear program and requires Tehran to dilute its stockpile of highly enriched uranium. Details released by both countries show the agreement waives US sanctions on Iran, immediately allowing Iran to freely sell oil.
In stocks, Intel shares rose another 8.7% after US President Donald Trump announced on social media that the company had agreed to manufacture chips for Apple in the US, following media reports that Apple was planning to raise prices due to a memory chip shortage. SpaceX fell for a second consecutive day, dropping 4.9% on Wednesday after its US stock market debut last week, and losing another 3.2% in pre-market trading on Thursday. Travel-related companies continued to rise on lower oil prices, with Delta Air Lines, United Airlines, and American Airlines gaining between 1.5% and 2%, while Royal Caribbean and Carnival Cruise Line both rose over 2%.
Federal Reserve Chairman Kevin Warsh, in his first press conference, did not forecast the path of the federal funds rate by the end of 2026, stating that he is considering reforming the Fed's communication with financial markets and US households and businesses. One of the first steps is to stop hinting at future interest rate moves in statements. Among the 18 colleagues on the Fed's rate-setting committee, nine expressed support for a rate hike this year, with six favoring two or more quarter-point increases. Raising rates could curb inflation but would slow economic growth and depress investment prices, while markets had expected the Fed to cut rates for most of the past year.
In European markets during afternoon trading, Germany's DAX index edged down 0.1%, Paris's CAC 40 fell 0.2%, and the UK's FTSE 100 dropped 1%. In Asian trading, Tokyo's Nikkei 225 rose 1.7% to close at a record high of 71,053.49 points, breaking through the 70,000-point mark for the first time this week, driven by hopes of an end to the war and a artificial intelligence boom fueling buying in high-tech stocks. Neil Newman, Head of Strategy at Astris Advisory Japan, said the rally was very broad, indicating market confidence that Japan's economy will recover after the war ends and oil prices are likely to decline in the near term. South Korea's stock market hit a record, surging 2.3% to 9,063.84 points, nearly tripling over the past year, led by Samsung Electronics and SK Hynix, with Samsung shares up 4.6% and SK Hynix up 6.5%. Taiwan's Taiex index rose 1.3%. Hong Kong's Hang Seng index fell 2.1% to 23,792.35 points, while the Shanghai Composite Index edged down 0.4% to 4,090.48 points. Australia's S&P/ASX 200 index dropped 0.6% to 8,911.10 points.
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