US stock futures rebounded during European trading hours on Thursday following reports that the US military had concluded its latest strikes on Iran, with Dow Jones futures rising 0.61% to near 50,300, S&P 500 futures up 0.67% to around 7,330, and Nasdaq 100 futures advancing 1.03% to approximately 28,850 [1]. This recovery came after a sharp sell-off in the previous regular session, where the Dow Jones fell 1.87%, the S&P 500 lost 1.62%, and the Nasdaq 100 dropped 1.98%, largely due to heavy selling in technology and semiconductor shares amid concerns over high AI valuations [1].
The conclusion of US military action against Iran raised hopes for a potential resumption of peace negotiations, though regional tensions remained high, as evidenced by the Israeli military's Home Front Command issuing early warnings after rocket launches from Lebanon toward northern Israel [1]. The geopolitical volatility has kept markets on edge, especially following fresh US attacks on Iran after President Trump accused Tehran of intentionally delaying talks over an interim peace agreement [1].
In extended trading, Oracle shares plunged more than 10% after the company announced plans to raise an additional $20 billion through a mix of equity and debt offerings to fund its artificial intelligence expansion. This move spooked investors due to concerns over dilution [1].
Overall market sentiment remains constrained by a recent hot inflation report, which has solidified expectations for a 'higher-for-longer' interest rate environment from the Federal Reserve. US inflation accelerated in May to its fastest pace in over three years, driven primarily by war-induced energy price spikes [1]. Investors are now awaiting the release of the May Producer Price Index (PPI) and weekly Initial Jobless Claims for further economic signals [1].
CONCLUSION
US stock futures rebounded after the US military concluded strikes on Iran, easing some geopolitical concerns, though regional tensions persist. Oracle's announcement of a $20 billion capital raise for AI expansion led to a sharp decline in its shares. Market sentiment remains cautious amid persistent inflation and expectations of prolonged higher interest rates.