Wall Street futures showed a split tone on Friday as the market approached the end of a week dominated by a U.S.-Iran impasse that removed much of the optimism for a rapid resolution to the conflict. Expectations that a second round of negotiations between Washington and Tehran might occur were not met - no talks took place and no timeline for future discussions has been established.
In recent developments, U.S. President Donald Trump unilaterally extended the ceasefire with Iran but left in place a naval blockade of Iranian ports. Meanwhile, Iran has continued to seize vessels attempting passage through the Strait of Hormuz. The persistence of hostilities in the strategic shipping corridor has kept oil price volatility elevated and contributed to investor unease.
At the same time, some elements of conflict fatigue appear to be appearing among market participants. Separately, Israel and Lebanon extended their ceasefire for an additional three weeks at a meeting brokered by President Trump, but investors remain wary and are seeking firmer evidence that the ceasefires will translate into durable stability.
Corporate results offered a partial offset to geopolitical concerns. Several companies reported strong earnings that helped soothe sentiment, though market participants noted that those reports reflected only one month of disruption related to the war, prompting questions about their usefulness as predictors of future performance.
In premarket electronic trading at 5:19 a.m. ET, Dow E-minis were down 177 points, or 0.36%; S&P 500 E-minis were flat; and Nasdaq 100 E-minis were up 162.25 points, or 0.60%.
Oil remains the most prominent source of uncertainty for investors. Brent crude futures are still roughly 47% higher than their pre-war levels, a jump attributed to disruption in the critical Strait of Hormuz shipping route. That sustained premium on crude has continued to influence market sentiment and valuations across energy-dependent sectors.
Some investors and strategists viewed the market’s pullback as an opportunity to buy, arguing that stress-driven periods can create attractive entry points. "Strong market entry points are rarely found during moments of comfort or clarity. Instead, the most attractive buying opportunities are typically associated with periods of market stress," said Jeff Schulze, head of economic and market strategy at ClearBridge Investments.
Individual stocks drawing attention in the premarket included Intel, which surged 23.3% after predicting second-quarter revenue that would exceed estimates. Rival AMD climbed 7.3% in reaction to the sector momentum. Online education company Coursera fell 10.2% following its first-quarter results.
In other market moves, DeepSeek - the Chinese artificial intelligence startup that surprised markets last year with a low-cost model - unveiled a preview of a new model adapted for Huawei chip technology. U.S. equities that had been pressured by that model in the prior year generally appeared to be holding up; Microsoft rose 0.7% and chip designer Marvell Technology gained 3.5%.
Investors continue to monitor how much near-term corporate reports, the trajectory of oil prices, and developments in the U.S.-Iran stalemate will together shape economic and market direction. Tools that evaluate company valuations remain in use by market participants; one such Fair Value calculator referenced in market commentary applies a mix of 17 industry valuation models to assess stocks like INTC and others.
What to watch next:
- Whether further diplomatic engagement between the United States and Iran is scheduled or materializes.
- Movement in Brent crude prices as disruptions in the Strait of Hormuz continue to affect global oil flows.
- Upcoming corporate updates that may reflect more than a single month of war-related disruption.