Tonight’s Highlights: U.S.-Iran Negotiations Near Restart; U.S. Indices Eye New Highs
U.S. stock index futures edged higher on Thursday, bolstered by growing optimism that Washington and Tehran are on the verge of a definitive agreement to end hostilities.
The uptick follows a record-breaking session on Wednesday, where both the S&P 500 and the Nasdaq Composite closed at all-time highs.
Reports suggest that the U.S. and Iran are moving closer to restarting formal negotiations aimed at ending the war and restoring navigation through the Strait of Hormuz. These talks could resume as early as next week in Islamabad, Pakistan.
Global markets mirrored this positive sentiment, particularly in the artificial intelligence (AI) sector. The Nikkei 225 was a standout performer, surging 5.6% led by an 18% jump in SoftBank shares.
As geopolitical tensions showed signs of easing, international oil prices retreated sharply; Brent crude futures fell over 4%, slipping below $97 per barrel, while spot gold rose more than 1%.
Beyond the geopolitical detente, a robust earnings season continues to provide a strong tailwind for equities.
Of the more than 400 S&P 500 companies that have reported thus far, approximately 85% have surpassed market expectations, putting the current quarter on track to be the strongest since Q2 2021.
Meanwhile, the U.S. dollar weakened and Treasury yields fell for a third consecutive session, with the greenback now trading below its pre-war levels.
Corporate News
SpaceX & xAI: Elon Musk announced on social media that xAI will be dissolved as a standalone entity and integrated into SpaceX as "SpaceXAI," serving as the company’s dedicated AI product line.
Anthropic & SpaceX: Anthropic has signed a major compute agreement with SpaceX to utilize the full capacity of the Colossus 1 data center. The company will add over 300 megawatts of new capacity this month—including over 220,000 Nvidia GPUs—to enhance services for Claude Pro and Claude Max subscribers.
McDonald’s: Reported first-quarter revenue of $6.52 billion, up 9% year-over-year. Net income rose 6% to $1.98 billion, with diluted earnings per share reaching $2.78.
Sony Music: Sony is reportedly in exclusive talks to acquire the music catalogs of artists including Justin Bieber and Neil Young from Blackstone’s Recognition Music Group. The deal, valued between $3.5 billion and $4 billion, would be a joint venture with Singapore’s sovereign wealth fund, GIC.
Honda: Citing weakening demand in the North American market, Honda has indefinitely frozen its plans to build an electric vehicle and battery plant in Canada. The project represented a total planned investment of C$15 billion ($11 billion).
Berkshire Hathaway: Warren Buffett’s firm has increased its stakes in Japanese trading houses Sumitomo Corp. and Marubeni Corp. to over 10% each.
Adidas: CEO Bjørn Gulden stated the company expects to receive a U.S. tariff refund of approximately €300 million ($335 million) following a U.S. Supreme Court ruling, though the gain has not yet been booked.
Foxconn & Poland: The Polish government has selected Foxconn as its partner for a national electric vehicle project. The joint venture aims to create a new automotive brand, with production at a new plant in Jaworzno expected to begin by 2029.