The major U.S. index futures are currently pointing to a modestly lower open on Thursday, with stocks likely to move back to the upside following the strong upward move seen in the previous session.
Traders may look to cash in on recent strength in the markets, as the rally seen during Wednesday's session more than offset the pullback seen to start the week.
The Nasdaq and the S&P 500 both surged to new record closing highs despite lingering uncertainty about the conflict in the Middle East.
A steep drop by shares of IBM Corp. (IBM) is also likely to weigh on the markets, with the tech giant plunging by 7.8 percent in pre-market trading.
The slump by IBM comes after the company reported better than expected first quarter earnings but failed to raise its full-year guidance.
Industrial giant Honeywell (HON) may also come under pressure after reporting first quarter earnings that exceeded estimates but forecasting weaker than expected second quarter earnings.
On the other hand, shares of Texas Instruments (TXN) are soaring by 9.6 percent in pre-market trading after the chipmaker reported better than expected first quarter results and provided upbeat guidance.
Stocks showed a strong move to the upside during trading on Wednesday, more than offsetting the pullback seen over the two previous sessions. With the upward move, the Nasdaq and the S&P 500 reached new record closing highs.
The Nasdaq and S&P 500 saw further upside going into the close, ending the day just off their highs of the session. The Nasdaq surged 397.60 points or 1.6 percent to 24,657.57 and the S&P 500 jumped 73.89 points or 1.1 percent to 7,137.90.
The narrower Dow gave back ground after an early advance but still ended the day firmly positive, closing up 340.65 points or 0.7 percent at 49,490.03.
The notable rebound on Wall Street came in reaction to news that President Donald Trump has extended the U.S. ceasefire with Iran.
Calling Iran's government "seriously fractured," Trump said in a post on Truth Social that the U.S. would hold off on attacking Iran until their leaders "come up with a unified proposal."
However, Trump also said that he has directed the U.S. military to continue its blockade of all maritime traffic entering and exiting Iranian ports.
Iran dismissed Trump's ceasefire extension as "meaningless" and said the Strait of Hormuz will remain closed until the U.S. blockade is lifted.
Mahdi Mohammadi, a senior adviser to Iranian Parliament Speaker Mohammad Bagher Ghalibaf, termed the ceasefire extension a ploy "to buy time for a surprise strike," adding the "losing side cannot dictate terms."
Shortly after Trump's ceasefire announcement, Iran's Revolutionary Guard Navy claimed it has seized two container ships in Strait of Hormuz for "maritime violations."
The back and forth between Trump and Tehran has led to some uncertainty, although traders generally remain hopeful about an eventual resolution of the conflict.
Traders also continue to express optimism about the strength of corporate results, with earnings season off to a solid start.
"Investors appear to be focusing more on the direction of risk — whether things are improving or deteriorating — rather than the absolute level of geopolitical tension," said Daniela Hathorn, Senior Market Analyst at Capital.com.
"Earnings season is playing a key role in reinforcing this narrative," she added. "Expectations for continued double-digit earnings growth remain intact, helping to justify elevated equity valuations even as macro risks persist."
Semiconductor stocks moved sharply higher over the course of the session, driving the Philadelphia Semiconductor Index up by 2.7 percent to a new record closing high.
Substantial strength was also visible among software stocks, as reflected by the 2.3 percent surge by the Dow Jones U.S. Software Index.
Computer hardware, oil service and gold stocks also saw considerable strength on the day, while airline stocks showed a significant move to the downside.
United Airlines (UAL) led the sector lower, plunging 5.6 percent after reporting better than expected first quarter results but providing disappointing guidance.
Commodity, Currency Markets
Crude oil futures are edging down $0.04 to $92.92 a barrel after spiking $3.29 to $92.96 a barrel on Wednesday. Meanwhile, after climbing $33.40 to $4,753 an ounce in the previous session, gold futures are slipping $2.40 to $4,750.60 an ounce.
On the currency front, the U.S. dollar is trading at 159.47 yen versus the 159.48 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1694 compared to yesterday's $1.1703.
Asia
Asian stocks retreated on Thursday as oil prices continued to surge amid the ongoing closure of the critical Strait of Hormuz.
In a significant escalation of the Middle East conflict, Iran seized two cargo ships seeking to exit the Gulf via the vital global oil route and warned that the U.S. and Israel will not achieve their goals "through bullying."
Parliamentary Speaker Mohammad Bagher Ghalibaf said that there can be no full ceasefire between the two countries if the U.S. naval blockade on Iranian ports persists.
Gold was subdued at $4,721 an ounce in Asian trade as the dollar held firm after two days of gains.
Brent crude futures climbed above $103 a barrel, extending gains for the fourth straight session as diplomatic efforts between the U.S. and Iran showed little progress, and EIA data revealed declines in U.S. inventories across key refined products.
China's Shanghai Composite Index dipped 0.3 percent to 4,093.25 after a choppy session. Hong Kong's Hang Seng Index slumped 1 percent to 25,915.20, weighed down by losses in financials stocks. Shares of HSBC Holdings ended down more than 2 percent.
Japanese markets surrendered early gains to end notably lower as profit-taking emerged at higher levels. The Nikkei 225 Index closed 0.8 percent lower at 59,140.23, after having climbed to a record high of 60,013 earlier.
The broader Topix Index slid 0.8 percent to 3,716.38. Lasertec, Disco, Sumco, Furukawa Electric and Sumitomo Electric fell 3-5 percent, while technology investor SoftBank jumped 3.9 percent.
Seoul stocks closed at a fresh record high for a third day running after data showed the country's economy grew more than expected in the first three months of the year despite the ongoing crisis.
The 1.7 percent growth in January to March from the previous quarter marked the fastest quarterly expansion in 5 1/2 years.
The Kospi closed 0.9 percent higher at 6,475.81 after a volatile session. Market bellwether Samsung Electronics surged 3.2 percent, while its chipmaking rival SK Hynix ended on a flat note despite posting record first-quarter revenue and profit.
Australian stocks ended lower as a survey showed Australia's private sector activity stabilized in April after March's decline.
The benchmark S&P/ASX 200 Index dropped 0.6 percent to 8,793.40, while the broader All Ordinaries Index settled 0.6 percent lower at 9,024.20. Oil & gas firm Santos rallied 3.6 percent after reporting increased production in Q1 2026.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index closed 0.5 percent lower at 12,884.93. hitting its lowest level since April 1.
Europe
European stocks are turning in a mixed performance on Thursday as investors digest a slew of earnings and watch the latest developments in the Middle East war, with a senior Iranian parliament official saying Tehran has deposited the first revenue from tolls on the strategic Strait of Hormuz into the Central Bank account.
Meanwhile, the Pentagon has reportedly informed the U.S. Congress that clearing mines allegedly positioned by the Iranian military could take up to six months.
In economic news, a survey showed Eurozone business activity unexpectedly slipped into contraction in April as a result of rising energy prices and falling services demand.
Elsewhere, the U.K. budget deficit narrowed in March, reaching its lowest level for the month since 2022, the Office for National Statistics reported.
Public sector net borrowing fell by GBP 1.4 billion to GBP 12.6 billion in March, marking the lowest March borrowing since 2022.
While the French CAC 40 Index is up by 0.5 percent, the German DAX Index is down by 0.2 percent and the U.K.'s FTSE 100 Index is down by 0.6 percent.
WH Smith shares slumped 10 percent. The British travel retailer issued a profit warning after reporting a sharp fall in first-half profit and suspending dividend due to uncertainty in the Middle East.
Online fashion retailer ASOS climbed 2.3 percent after narrowing its first-half loss and backing its full-year outlook.
J Sainsbury plunged 5.2 percent after the grocer warned that profits could fall this year.
Automakers BMW, Mercedes Benz and Volkswagen were moving lower despite Europe's new car registrations logging strong growth in March.
France's Renault advanced 1.5 percent after first quarter sales beat forecasts.
Aerospace and defense group Safran gained 1 percent after first-quarter revenue came in above expectations.
Telecommunications company Orange rallied 4 percent after lifting a key earnings metric for the full year.
Drugmaker Sanofi gained 3.5 percent after reporting better-than-expected revenue and operating income for the first quarter.
German life sciences group Sartorius plummeted almost 5 percent after reporting a fall in first quarter underlying net profit.
Nestle shares soared 7 percent. The Swiss foodmaker surpassed first quarter expectations, supported by increased demand for its coffee and pet food products.
Finnish telecom gear maker Nokia jumped more than 9 percent after quarterly profit soared 54 percent, driven by skyrocketing demand for its artificial intelligence business.
Dutch brewer Heineken fell 2.3 percent after beer volumes fell again in the first quarter.
Apple supplier STMicroelectronics gained 8.5 percent after first quarter revenue beat estimates.
U.S. Economic News
First-time claims for U.S. unemployment benefits rose by slightly more than expected in the week ended April 18th, according to a report released by the Labor Department on Thursday.
The report said initial jobless claims climbed to 214,000, an increase of 6,000 from the previous week's revised level of 208,000.
Economists had expected jobless claims to rise to 212,000 from the 207,000 originally reported for the previous week.
The Labor Department said the less volatile four-week moving average also crept up to 210,750, an increase of 750 from the previous week's revised average of 210,000.
At 11 am ET, the Treasury Department is scheduled to announce the details of this month's auctions of two-year, five-year and seven-year notes.
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April 17, 2026 15:29 ET The ongoing conflict in the Middle East continues to raise concerns for policymakers who worry about the impact of the supply shock and high energy prices on the real economy. Producer price data and various survey results on the housing market were the main news from the U.S. this week. In Europe, industrial production data for the euro area gained attention. GDP figures out of China and the policy move by the Singapore central bank were in focus in Asia.