U.S. stock futures climb as Iran conflict signals ease; oil retreats, Nike falls, Microsoft explores energy deal

U.S. futures advance on prospects of U.S. exit from Iran conflict

By 03:25 ET (07:25 GMT) on Wednesday, Dow futures were up 270 points, or 0.6%, S&P 500 futures rose 43 points, or 0.7%, and Nasdaq 100 futures gained 227 points, or 1.0%. The moves followed a Tuesday rally in the main Wall Street averages, supported by growing expectations that the U.S. will soon withdraw from its joint assault with Israel against Tehran.

These expectations were underpinned by a Wall Street Journal report that U.S. President Donald Trump had told aides he was open to leaving the war even if the Strait of Hormuz remained largely blocked to tanker traffic. Trump later effectively confirmed this in remarks to reporters and on social media, stating that the U.S. would be “leaving very soon” and that the White House’s goal of eradicating Iran’s nuclear threat had been “attained,” adding that Washington does not need a formal deal to conclude the conflict.

Trump also reiterated that negotiations with Iran are “going well,” a characterization frequently disputed by officials in Tehran. Iran acknowledged that messages are being exchanged, and its president indicated the country has the “necessary will” to end the war if it receives guarantees that it will not be attacked again.

Commodities move: oil slips below $100, gold extends gains

Brent crude futures for June delivery fell 4.2% to $99.60 a barrel on Wednesday. After the war’s outbreak in late February, Brent had spiked to almost $120 a barrel, from around $70 a barrel before the conflict, and remains well above pre-war levels despite the latest pullback.

Gold prices rose for a fourth consecutive session in European trading, with spot gold moving back above $4,700 an ounce.

Corporate updates: Nike’s China softness, Microsoft’s power project talks

Nike reported fiscal third-quarter earnings that exceeded expectations on both revenue and profit, but the figures highlighted ongoing weakness in Greater China and a drop in gross margin. The company posted earnings of $0.35 per share on revenue of $11.28 billion. Sales from Greater China fell 7% year-on-year to $1.62 billion, marking a seventh straight quarterly decline, and Nike shares fell in after-hours trading.

Separately, Microsoft is in exclusive talks with Chevron Corp and Engine No. 1 regarding a proposed large-scale energy complex in West Texas to power a data center campus. The planned natural gas-fired plant is expected to cost about $7 billion and initially generate 2,500 megawatts of electricity.

FAQ

Why are U.S. stock futures higher today?
U.S. stock futures are higher as investors respond to indications that the U.S. may soon end its more than month-long campaign in Iran, easing some geopolitical concerns.

What is happening with oil prices?
Brent crude futures for June delivery fell 4.2% to $99.60 a barrel, pulling back from recent highs near $120 a barrel but remaining significantly above pre-conflict levels of around $70 a barrel.

How did Nike perform in its latest quarter?
Nike delivered a top- and bottom-line beat with fiscal third-quarter earnings of $0.35 per share on $11.28 billion in revenue, but Greater China sales declined 7% year-on-year to $1.62 billion, its seventh consecutive quarterly drop, contributing to pressure on the stock after hours.

What deal is Microsoft currently negotiating?
Microsoft is in exclusive talks with Chevron Corp and Engine No. 1 for a roughly $7 billion natural gas-fired power plant project in West Texas, designed to initially generate 2,500 megawatts to support a data center campus.