Dow, S&P 500, Nasdaq Futures Pull Back After Record Session On Strait Of Hormuz Uncertainty: Why TSLA, GME, TLRY, NOW, QS Stocks Are In Focus

• The S&P 500 closed up 1.05% at a record high of 7,137.90, while the Nasdaq Composite was 1.64% higher at close at 24,657.57.
• Tesla reported first-quarter earnings on Wednesday that came in ahead of expectations.
• Tilray surged more than 7% in after-hours on optimism that the Trump administration would reportedly soon reclassify marijuana as a Schedule III drug.

U.S. stock markets finished higher on Wednesday, with the S&P 500 and Nasdaq indexes jumping to record peaks as markets turned optimistic on U.S. President Donald Trump’s extension of the ceasefire with Iran, along with a slew of strong earnings results that bolstered the upward climb.

However, stock futures fell later in the day. As of 9:15 p.m. ET, Dow Jones futures slid by about 0.48%, S&P 500 futures slid 0.31%, and Nasdaq 100 futures declined 0.18%.  

ETFs tracking the benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ), and SPDR Dow Jones Industrial Average ETF Trust (DIA), were all falling overnight, although with retail sentiment on Stocktwits was in the ‘bullish’ territory for all three.

How Did US Markets Fare On Monday?

The S&P 500 closed up 1.05% at a record high, while the Nasdaq Composite was 1.64% higher. The Dow Jones Industrial Average also gained, adding 340.65 points to 0.69% higher.

US Market Drivers

President Trump extended the ceasefire with Iran on Tuesday, a day before its expiry, helping the S&P 500 and Nasdaq jump to record highs after two consecutive days of declines. Although the president is giving Iran some time to propose a new peace plan, tensions in the Strait of Hormuz persist.

Iran has reportedly seized two ships in the critical waterways overnight, although the White House said that since the ships were not American or Israeli, the attacks didn’t constitute a violation of the ceasefire.

Earlier on Tuesday, Trump also appreciated Iran for allegedly pulling the plug on executing eight Iranian female protestors, in a post on Truth Social. “I very much appreciate that Iran, and its leaders, respected my request, as President of the United States, and terminated the planned execution,” he said.

Markets also inched higher on earnings optimism. Boeing Co. (BA) shares climbed after the aircraft manufacturer reported lower-than-expected quarterly loss. Investors also piled into Tesla Inc. (TSLA) ahead of its results.

On the economic front, markets will be looking out for U.S. employment and manufacturing data expected later on Thursday.

Trending Stocks To Watch

Tesla Inc. (TSLA): The EV maker was on retail traders’ radar after it reported first-quarter earnings on Wednesday that came in ahead of expectations. Shares of the company initially edged higher in extended trading but dropped after the company raised capex guidance to more than $25 billion.

GameStop Corp. (GME): The meme stock got a boost in overnight trading, climbing more than 2% after ‘The Big Short’ investor Michael Burry increased his position in the company.

ServiceNow Inc. (NOW): The stock plummeted by over 13% after-market after the firm’s subscription revenue took a hit, while a slowdown in deals due to the U.S.-Iran war weighed down on the stock.

Tilray Brands Inc. (TLRY): The cannabis stock surged more than 7% in after-hours trading on optimism that the Trump administration would reportedly soon reclassify marijuana as a Schedule III drug, similar to painkillers.

QuantumScape Corp. (QS): The energy storage company surged more than 20% overnight after it reported strong earnings that beat Wall Street expectations on strong demand.  

Broader Market Trends

Meanwhile, oil futures gained in Wednesday’s overnight trading, edging over $100 a barrel for the first time in two weeks. Brent crude futures expiring in June edged 0.58% higher to $102.50 a barrel, while WTI crude futures expiring in May gained 0.56% to $93.48 a barrel at the time of writing.

Meanwhile, treasury yields on the benchmark 10-year were at 4.311%, while gold traded around $4,729.22 an ounce.

Asian markets opened mixed on Thursday, with KOSPI, Nikkei 225, and the Shanghai Composite all trading up, while the Hang Seng and Australian stocks dipped lower at the open.

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