US stock futures held steady gains while Brent crude fell for a third consecutive session as investors awaited further developments on a potential US-Iran agreement that could restore oil flows through the Strait of Hormuz.
S&P 500 futures were little changed after the benchmark recorded back-to-back record closes. Brent traded near $99 a barrel, extending a 12% decline over the previous two sessions as confidence grew that a Middle East agreement may be approaching. The dollar headed for its weakest week in a month, while global bonds continued to rally as inflation concerns eased.
Equities have largely recovered losses tied to the conflict, with optimism around a potential resolution adding momentum to a rally already supported by strong technology earnings and enthusiasm surrounding artificial intelligence. Reopening Hormuz would also reduce concerns about the war’s broader economic impact.
Iran is expected to deliver a response through Pakistan within the next few days. Despite improving sentiment, tensions remained elevated after Israel said it had killed a Hezbollah commander in Lebanon.
With Friday’s April payrolls report approaching and more than 80% of S&P 500 companies having already reported earnings, some investors said the next move higher for stocks may depend more on expectations for Federal Reserve rate cuts than on corporate results. In that context, lower oil prices could prove more influential than labor market data.
In Europe, the Stoxx 600 slipped 0.3% as investors assessed another round of company earnings. The UK’s FTSE 100 fell 0.7%, dragged lower by Shell after the energy group reduced its buyback program. Centrica also declined after warning that retail earnings are likely to come in near the lower end of guidance.
Meanwhile, the European Union failed to finalize a long-delayed trade agreement with the US despite warnings from President Donald Trump that fresh tariffs on cars and trucks could be introduced soon.
