US pre-open: Futures higher as oil prices stabilise, PepsiCo in focus

(Sharecast News) - Stock futures were pointing to small gains on Wall Street on Thursday as markets attempted to recover from losses in the previous session following the end of a ceasefire between the US and Iran. Oil prices stabilised after surging on Wednesday following the resumption of strikes by the two nations after Donald Trump announced that the ceasefire was officially "over", claiming that he no longer wants to deal with Iran's leaders.

Brent was up just 0.2% at $78.17 a barrel ahead of the opening bell in New York, following a 5.2% jump on Wednesday, while WTI crude was 0.1% higher at $73.60 after gaining 4.4% previously.

By 1131 BST, Dow futures were pointing to a flat start after the index dropped 1.1% on Wednesday. S&P 500 futures were 0.2% higher, while the Nasdaq was rising 0.6% as chip and AI stocks continued to rebound after recent losses.

"After spooking markets yesterday by saying the ceasefire with Iran is over, President Trump has now claimed that Iran wants to make a deal, although this has not been confirmed by Tehran," said Kathleen Brooks, research director at XTB.

"For now, it seems like the situation may not escalate from here, although Iran has not confirmed that it wants a deal, and there could be symbolic attacks from Iran on the final day of Khamenei's funeral," Brooks said.

Back on home soil, two key US economic data releases will be in focus during Thursday's session, with jobless claims at 1330 BST and existing home sales at 1500 BST.

Initial jobless claims are expected to have risen by 3,000 to 218,000 last week, after falling more than expected to a five-week low the preceding seven days. Existing home sales are forecast to have jumped to a six-month high of 4.20m in June from 4.17m in May.

In equity news, PepsiCo was making headlines after beating market estimates with its second-quarter results, with futures up ahead of the opening bell. Revenues from the soft drinks and snacks manufacturer were up 6.4% year-on-year at $24.18bn, beating the $23.95bn consensus forecast, with adjusted earnings per share came in a penny ahead of estimates at $2.20.