US pre-open: Futures little changed as fragile ceasefire remains in focus

(Sharecast News) - Wall Street futures were little changed ahead of the bell on Friday as market participants continued to assess the US and Iran's already fragile two-week ceasefire agreement. As of 1225 BST, Dow Jones futures were down 0.03%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.04% and 0.10% firmer, respectively.

The Dow closed 275.88 points higher on Thursday, extending the blue chip's post-ceasefire rally.

Trump agreed to extend his deadline for Iran to reopen the Strait of Hormuz by a further two weeks on Tuesday evening, after the five‑week conflict in the Middle East led to the closure of the key shipping route.

However, Iran's parliamentary speaker Mohammad Bagher Ghalibaf said Israel's continued strikes in Lebanon amounted to a breach of the ceasefire agreement between Washington and Tehran. Israeli prime minister Benjamin Netanyahu later said he was prepared to begin talks with Lebanon "as soon as possible".

Trade Nation's David Morrison said: "Yesterday, all the US majors built modestly on the strong gains posted during the previous session as investors responded to the unexpected ceasefire announcement from late on Tuesday. The news had a galvanising effect on financial markets as it came less than two hours before a deadline set by the Trump administration for Iran to reopen the Strait of Hormuz. President Trump went as far as threatening to wipe out a civilisation if Iran failed to respond. Global equities soared, the US dollar fell and oil prices slumped. But yesterday's trade was somewhat more nuanced as both sides accused one another of breaking the terms of the ceasefire. Israel upped its attacks on Lebanon, claiming that Lebanon was not part of the deal, while Iran continued to block shipping through the Strait of Hormuz.

"All the US majors remain on track for strong weekly gains. That being so, investors have a difficult decision to make heading into the weekend. Do they book some profits now, or roll the dice on hopes that the rally in global equities continues into next week? It's a tricky choice, particularly ahead of planned peace talks between the US and Iran due to begin in Pakistan tomorrow."

On the macro front, March's consumer price index will be released at 1330 BST, while February factory orders and a preliminary reading of the University of Michigan's April consumer sentiment index will follow at 1500 BST.

No major corporate earnings were slated for release on Friday.





Reporting by Iain Gilbert at Sharecast.com