US equity futures pointed lower Thursday morning as traders took profits off fresh record highs, with geopolitical risk re-emerging as the dominant overnight theme. Stalled US-Iran talks and the continued closure of the Strait of Hormuz drove oil prices higher, souring risk sentiment after a record rally on Wall Street.
Futures contracts for the S&P 500 and the tech-heavy Nasdaq 100 both dropped about 0.4%, after the underlying gauges closed at record highs on Wednesday, lifted by robust corporate earnings and an extension of the US-Iran ceasefire. In the prior session, the S&P 500 gained 1.05% to 7,137.90, while the Nasdaq advanced 1.64% to 24,657.57 after reaching a new intraday high. Overnight sentiment in Asia echoed the caution, with MSCI's Asia Pacific equity gauge falling 0.6% as higher oil prices weighed on growth expectations, with decliners outnumbering advancers two to one.
Tesla Headlines the Pre-Market Tape
Tesla shares were under pressure in after-hours trade following its Q1 print. The company beat expectations with non-GAAP earnings of $0.41 per share and matched revenue estimates at $22.38 billion. Gross margin jumped to 21.1%, up 478 basis points year-over-year from 16.3% and above Q4 2025's 20.1%.
However, the quality of the beat drew scrutiny. The first factor Tesla cited in driving Q1 profit improvement was an "increase in automotive one-time benefits related to warranty and tariffs." The company also built over 50,000 more vehicles than it sold, signaling a significant inventory buildup.
Crude Extends Gains as Hormuz Stays Shut
Energy markets remained the central pressure point. Brent traded over $103 a barrel after jumping almost 13% over the last three sessions, while the West Texas Intermediate (WTI) contract hovered around $94. Oil futures rose as Iran's navy seized two container ships in the Strait of Hormuz, underscoring the ongoing instability in the region and the peace talks have been put on hold.
Iran also stated it would not reopen the strait while the US Navy continues intercepting vessels, even as President Trump extended the ceasefire, noting that Tehran's leadership was "seriously fractured."
Gold Slips; Dollar Firm Into US Open
Gold was down 0.74% at $4,717.90 an ounce Thursday morning, after advancing 0.72% on Wednesday. Gold remains down nearly 10% since the conflict began.
In currency markets, the greenback held firm as safe-haven flows and the energy-exporter bid offset fresh tensions. The euro hovered without clear direction as soft sentiment and rising oil prices applied pressure, while the pound edged down despite data showing inflation tied to energy costs. The yen also retreated as markets awaited clearer signals on policy and external risks.
Pre-Market Snapshot (Levels as of early Thursday trade)
- S&P 500 futures: 7,139.50 (-0.44%)
- Nasdaq 100 futures: 26,980 (-0.38%)
- Russell 2000 futures: 2,780.80 (-0.52%)
- VIX: 19.60 (+3.65%)
- Brent crude: $102.87/bbl (higher)
- WTI crude: $93.94/bbl (higher)
- Gold: $4,714.90 (-0.74%)
- Bitcoin: $77,476.94 (-1.09%)
What to Watch at the Open
Aside from Tesla’s earnings report, pre-market earnings reactions in American Express, Honeywell, Union Pacific, Lockheed Martin, and Comcast will set the early tone.
The weekly jobless claims and the preliminary April S&P Global manufacturing and services PMIs will offer signals on oil-shock pass-through into the broader economy. Intel's after-the-bell report will be key for semis, which have been a leadership group heading into earnings season. Headline risk from Tehran on Strait of Hormuz traffic and any US response remains the wildcard.
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