U.S. stock futures were mixed on Thursday, as the Dow Jones and S&P 500 indices rose and the Nasdaq 100 declined, following Wednesday's mixed close.
According to Reuters, a proposed Oman-brokered deal could hand Tehran control over inbound shipping through the crucial Strait of Hormuz, marking a potentially major concession in the five-month conflict.
While crude prices eased with Brent Oil Futures trading around $79.91 per barrel at the last check, Iran reported the shipping agreement was in its final stages; significant sticking points remain over control and cargo fees, with Washington continuing to resist Iranian authority over the waterway.
Meanwhile, the 10-year Treasury bond yielded 4.62%, and the two-year bond was at 4.20%. The CME Group's FedWatch tool's projections show markets pricing a 54.9% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
The SPDR S&P 500 ETF Trust SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100, respectively, were mixed in premarket on Thursday. The SPY was up 0.18% at $771.20, while the QQQ declined by 0.31% to $715.09.
SanDisk
- SanDisk Corp. SanDisk Corp. (SNDK) dropped 9.45% in premarket on Thursday despite posting better-than-expected fourth-quarter results after Wednesday's closing bell. The company's board of directors approved a $14 billion share repurchase program expansion, bringing the total to $15.5 billion available for purchases.
- MarketDash's Edge Stock Rankings indicate that SNDK maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a bad value score.
Western Digital
- Western Digital Corp. Western Digital Corp. (WDC) tumbled 13.89% as well despite beating fourth-quarter results. It expects first-quarter adjusted EPS of $3.85 to $4.15, versus the $3.81 estimate, and revenue of $4 billion to $4.2 billion, versus the $4.01 billion analyst estimate.
- MarketDash's Edge Stock Rankings indicate that WDC maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a poor growth score.
AppLovin
- AppLovin Corp. AppLovin Corp. (APP) slumped 14.31% as it reported second-quarter revenue of $1.924 billion, missing analyst estimates of $1.935 billion and earnings of $3.76 per share for the quarter, beating estimates of $3.67 per share.
- MarketDash's Edge Stock Rankings indicate that APP maintains a weak price trend in the long, short, and medium terms, with a bad value score.
HubSpot
- HubSpot Inc. HubSpot Inc. (HUBS) also plunged 23.31% despite upbeat second-quarter earnings and sales results.
- MarketDash's Edge Stock Rankings indicate that HUBS maintains a strong price trend in the short and medium terms but a weak trend in the long term, with a good growth score.
Circle Internet Group
- MarketDash's Edge Stock Rankings indicate that CRCL maintains a weak price trend in the short, long, and medium terms.
Cues From Last Session
Health care, financial, and materials stocks led the gains on Wednesday, driving most S&P 500 sectors higher, while energy and communication services dropped.
Insights From Analysts
According to recent insights from the BlackRock Investment Institute, BlackRock maintains an overweight tactical view on U.S. equities, expecting robust corporate profitability driven by artificial intelligence to outweigh higher borrowing costs.
However, they caution that the broader economy and markets operate under a persistent "high-for-longer" rate regime shaped by structural supply scarcity, heavy government borrowing, and sticky inflation.
Key Market & Economic Expectations:
- U.S. Stocks & AI Bottlenecks: BlackRock notes that "strong corporate earnings, fueled by the AI buildout and a favorable macro backdrop, are outpacing higher interest rate expectations." Instead of broad stock exposure, they advise targeting AI bottlenecks—such as power, chips, data centers, and energy infrastructure.
- Interest Rates & Scarcity Economy: BlackRock warns that energy constraints, tight labor markets, and geopolitical shifts keep borrowing costs elevated. They state that these dynamics "underscore our long-held view of a world shaped by supply scarcity keeping inflation and borrowing costs higher."
- Rethinking Bonds: With long-term yields elevated, BlackRock remains underweight long U.S. Treasuries, observing that "for investors, the role of government bonds has shifted: less ballast, more income."
Upcoming Economic Data
Here's what investors will be keeping an eye on Thursday.
- Preliminary second-quarter productivity and costs data, along with initial jobless claims for the week ending Aug. 1, will be released by 8:30 a.m. ET.
- June's monthly wholesale trade data will be out by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 0.47% to hover around $75.57 per barrel.
Gold Spot US Dollar rose 0.49% to hover around $4,267.37 per ounce. The U.S. Dollar Index spot was 0.08% higher at the 99.7510 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.98% higher at $64,795.94 per coin over the last 24 hours.
Asian markets closed lower on Thursday, except India's Nifty 50 and Australia's ASX 200 indices. Japan's Nikkei 225, Hong Kong's Hang Seng, South Korea's Kospi, and China's CSI 300 indices fell. European markets were mostly higher in early trade.
