U.S. stock futures climbed on Thursday, with the Nasdaq 100 leading the major indices higher after Wednesday’s mixed close. The advance held even as Iran renewed its rhetoric over the Strait of Hormuz, while traders priced heavy odds of the Federal Reserve standing pat in July.
U.S. equity futures pushed higher on Thursday, with the Nasdaq 100 rising 0.68% to lead the board. The S&P 500 added 0.24% and the Dow Jones edged up 0.07%, while the Russell 2000 gained 0.27%, building on Wednesday’s mixed close.
Geopolitics fails to dent the bid
The gains came despite fresh friction between Washington and Tehran. Iran’s Parliament Speaker Mohammad Bagher Ghalibaf doubled down on claims about Tehran controlling the Strait of Hormuz, warning that U.S. “bullying” and broken commitments would carry consequences.
Yet the energy market showed little alarm. Crude oil futures traded 0.90% lower at around $72.86 per barrel in early New York trade, a soft reading that helped keep equity sentiment steady.
Rates in focus as the Fed meeting nears
Bond markets underlined a wait-and-see mood. The 10-year Treasury yielded 4.56% and the two-year sat at 4.19%, with markets pricing a 72.7% likelihood of the Fed holding rates at July’s meeting, according to CME Group’s FedWatch tool.
Wharton Professor Jeremy Siegel argued that easing energy and commodity prices, alongside flattening rent growth, are weakening the case for further tightening. On the inflation outlook, Siegel noted, according to Benzinga: “the underlying inflation backdrop is improving”.
Sector rotation and the AI story
Siegel pointed to resilience beneath what he called violent sector rotations driven by artificial intelligence speculation. He remains bullish on AI, framing it as a productivity story rather than simply a cost-cutting one, and predicts the Fed will likely stay on hold for the rest of the year.
That backdrop leaves Thursday’s data in view. Investors await initial jobless claims for the week ending Jul. 4 and June’s existing home sales figures, both due before the opening bell rush.
Source: Benzinga
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