US stock futures pointed to a steadier open on Thursday as investors looked past the latest flare-up in US-Iran tensions, refocusing on the AI trade and resilient demand for semiconductor stocks. Nasdaq-100 futures rose 0.6%, while S&P 500 futures added 0.2% and Dow futures were little changed, after Wednesday's sharp sell-off that saw the Dow drop nearly 600 points.
Oil prices eased, with Brent crude sliding 0.4% to $77.75 a barrel and WTI dipping 0.3% to $73.26, unwinding some of the earlier spike triggered by President Trump's declaration that the interim Iran ceasefire was "over." The pullback helped calm equity markets, even as geopolitical risks remained. UBS Global Wealth Management strategists noted that while the path to a lasting agreement is uneven, both sides have incentives to keep the Strait of Hormuz open. The US dollar slipped 0.1% against a basket of peers, and the 10-year Treasury yield edged down 1 basis point to 4.57%, reflecting lower demand for safe havens.
The rebound was driven largely by semiconductor stocks. Micron rose 3.5% in premarket trading, while AMD and Intel gained more than 2.5%. Wall Street analysts maintained bullish stances: Bank of America reiterated a Buy rating on Micron, UBS lifted DRAM price forecasts, Goldman Sachs raised its AMD target, and HSBC doubled its Intel target. A further catalyst was the heavy demand for SK Hynix's Nasdaq debut, with the offering reportedly oversubscribed by seven times, seen as a barometer of appetite for AI-linked hardware.
Minutes from the Fed’s June meeting, released Wednesday, revealed that a few policymakers saw a case for raising rates, keeping hawkish risks alive. Markets still price in at least one rate increase by year-end. Traders now await weekly jobless claims data and a speech by New York Fed President John Williams for the next clues on the economy. Pepsi's mixed earnings, showing consumers pulling back on spending, added to the cautious macro undercurrent.
Against this backdrop, Bitcoin edged modestly higher, balancing geopolitical uncertainty and hawkish Fed signals. The VIX held steady, suggesting the market is not yet pricing in a major escalation in the Middle East.
