Futures Mixed as US-Iran Peace Talks Stall, AI Rally Cools

U.S. stock futures are trading mixed in pre-market hours as geopolitical tensions escalate with stalled US-Iran peace talks and the artificial intelligence rally shows signs of cooling after Thursday’s session.

Overnight Market Action

Thursday’s trading session revealed a clear sector rotation, with the Dow Jones Industrial Average (DIA) surging 1.66% to close at $516.70, while the tech-heavy Nasdaq 100 (QQQ) declined 0.48% to $740.61. The S&P 500 (SPY) managed a modest 0.38% gain, finishing at $757.09.

The divergence reflects investor concerns about elevated AI valuations as the technology sector posted a 1.56% decline, marking one of the session’s worst-performing segments. Meanwhile, traditional value sectors led gains, with healthcare advancing 3.07% and financials climbing 2.59%.

Geopolitical Developments

Market sentiment remains cautious following reports that US-Iran peace negotiations have reached an impasse. The European Commission warned that the ongoing Iran conflict could result in 1.3 million job losses across the EU due to energy price surges. However, oil markets found some stability after Oman confirmed that operations at the Mina al Fahal terminal are proceeding normally, despite earlier reports of export disruptions.

In the UK, house prices posted an unexpected decline as the Iranian conflict’s economic impact spreads to global real estate markets, according to Reuters reporting.

Sector Focus

Real estate ETFs warrant attention following the sector’s 2.05% Thursday gain, though UK housing data suggests international headwinds. Financial sector ETFs remain in focus after their strong 2.59% performance, potentially benefiting from rising interest rate expectations amid geopolitical uncertainty.

Technology ETFs face scrutiny as the AI rally shows signs of fatigue, with the sector’s 1.56% decline representing a notable shift from recent momentum.

Earnings Calendar

Several companies report earnings today, including ABM Industries (ABM) with consensus estimates of $0.883 EPS on $2.24 billion revenue, and G-III Apparel Group (GIII) expected to post a loss of $0.31 per share on $540.5 million revenue. StealthGas (GASS) and Confluent (CFLT) also report results.

Economic Data

No major economic releases are scheduled for Friday, leaving markets to digest geopolitical developments and corporate earnings results.

This article is generated from market data for informational purposes only. It does not constitute investment advice.