Dow Jones futures retreats as US-Iran peace efforts stall

Dow Jones futures fall 0.54% to near 49,400, with S&P 500 and Nasdaq 100 futures also declining 0.39% and 0.36% below 7,150 and 27,000, respectively, during the European hours on Thursday ahead of the United States (US) regular opening.

US index futures retreated as stalled US–Iran peace efforts weighed on risk sentiment. Reports said Iran fired on three ships in the Strait of Hormuz, escorting two into Iranian waters Wednesday, marking a further escalation, though the White House said the seizures did not breach ceasefire terms.

Mohammad Bagher Ghalibaf, Iranian parliament speaker and chief negotiator, stated that reopening the strait would be “impossible” while the United States (US) and Israel persist with what he described as “flagrant” ceasefire violations, including the US naval blockade. Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a renewed peace proposal from Tehran.

In regular US trading on Wednesday, the Dow Jones rose 0.69%, while the S&P 500 and Nasdaq 100 gained 1.05% and 1.64%, respectively, both closing at fresh record highs. Market sentiment was buoyed by a strong earnings season, with AI-linked companies advancing as a risk-on shift lifted speculative sectors, and chipmakers such as Broadcom, AMD, and Micron posting notable gains.

On the corporate front, IBM reported earnings per share of $1.91, surpassing expectations of $1.87. Boeing climbed 5% after reporting a slower cash burn. Apple added 2.3%, while Tesla posted earnings per share of $0.41, in line with forecasts.