US equity futures advanced, bouncing after Wednesday’s late selloff in tech shares, while a swift end to renewed American strikes on Iran kept oil prices in check.
Contracts on the S&P 500 were up 0.8% as of 5:03 a.m. in New York, while Nasdaq 100 futures gained 1.3% . Both underlying gauges on Wednesday had continued their retreat from all-time highs hit earlier this month, amid escalating tensions in the Middle East and some unwind in the artificial intelligence trade.
Brent crude erased gains from earlier in the session as the quick completion of US strikes against Iran raised hopes that talks to open the Strait of Hormuz may soon restart.
Oracle Corp. shares slumped as much as 12% in premarket trading after the company reported quarterly capital expenses that were higher than estimates, fueling investor concerns about the profitability of the AI infrastructure business. Oracle’s spending numbers spurred premarket gains in chipmakers and other AI-related firms Thursday.
Elsewhere, Wednesday’s print of consumer prices for May had soothed investor concerns that accelerating inflation may force the Federal Reserve’s hand in raising interest rates. May US core inflation accelerated less than forecast .
“US equities are starting to find a bottom,” said Bank J Safra Sarasin equity strategist Wolf von Rotberg, adding that the latest inflation numbers temporarily alleviated fears of a sharp rise in price pressures.
“The market may now move into a wait-and-see mode, finding out how the Fed reaction function has changed under the new chairmanship,” Von Rotberg said.