Nasdaq, S&P 500, Dow Futures Shake Off Iran Jitters As Investors Turn To AI Hyperscaler Earnings: INTC, TSLA, TTD, HIMS In Focus

• Oil prices climbed above $100 a barrel amid growing conflict in the Middle East. 
• U.S. President Donald Trump threatened “major military punishment” for Iran amid the escalating tensions.
• “Magnificent Seven” stocks were in the red at close on Thursday, and the Roundhill Magnificent Seven ETF (MAGS) fell 4.6% amid the selloff. 

U.S. stock futures traded higher overnight on Thursday, as markets looked past renewed U.S. military action in Iran and rising oil prices, instead turning their focus to hyperscaler earnings amid growing scrutiny of AI spending.

Nasdaq-100 futures gained 0.14%, Dow futures were up 0.08%, and S&P 500 futures rose 0.12% at 9:20 PM EDT.  Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ), and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all edged higher at the time of writing. 

The iShares 20+ Year Treasury Bond ETF (TLT) was also up 0.02% amid ‘bearish’ sentiment.

How Did US Markets Fare On Thursday?

U.S. stock markets ended lower on Thursday as growing conflict in the Middle East pushed Brent crude prices above $100 a barrel for the first time since May.  

The Nasdaq Composite led the decline, shedding more than 550 points to close 2.15% lower. The S&P 500 fell 1.21%, while the Dow Jones Industrial Average declined 0.97% at close.   

US Market Drivers

Markets were primarily focused on earnings from major companies, alongside rising oil prices due to the continued tensions between the U.S. and Iran. 

Intel Corp. (INTC) gained more than 4% overnight on Thursday after delivering better-than-expected second-quarter (Q2) results and forecasting strong sales for the third quarter, boosting confidence in AI-related infrastructure spending. 

However, Alphabet Inc.’s (GOOG, GOOGL) ballooning capex spending attracted multiple Wall Street price target cuts, pressuring the company and sending its shares about 7% lower at close. 

Tesla Inc. (TSLA) shares also sank more than 14% amid Wall Street’s lowered targets. Other “Magnificent Seven” stocks were also in the red at close on Thursday. The Roundhill Magnificent Seven ETF (MAGS) fell 4.6% at close amid the selloff. 

“The real problem is the amount of spend that’s going on,” Ken Mahoney, chief executive officer of Mahoney Asset Management, told Bloomberg, adding that “No one knows what the return on investment is.”

Markets are now awaiting results from Microsoft Corp. (MSFT), Meta Platforms Inc. (META), Amazon.com Inc. (AMZN) and Apple Inc. (AAPL), expected next week. 

Meanwhile, climbing oil prices added to the pressure after Yemen's Iran-backed Houthi militants claimed attacks on two Saudi oil tankers in the Red Sea, stoking fears of a broader Middle East conflict.

U.S. President Donald Trump threatened “major military punishment” for Iran amid the escalating tensions. “A year ago the United States of America attacked, very powerfully, the Houthis, for their interference with commerce and trade, by shooting at ships. Since that time, and during our conflict with Iran, they have acted very responsibly. Unfortunately, now they are starting up again, shooting at two Saudi Arabian ships last night. Please let this TRUTH serve to represent that if they do this again, the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves,” he said in a post on Truth Social. 

The U.S. Central Command confirmed a 13th consecutive night of attacks on Iran in a post on X, adding that it “aimed to hold Iran accountable and diminish threats from the Islamic Revolutionary Guard Corps to commercial shipping.”

Later on Thursday, according to a report from Axios, Trump said that he is considering a “massive attack” on Iran that would be “bigger than ever before.” He added that he was “close to making a decision” and that they are “all set for it.” 

Mohamed El-Erian, chief economic adviser at Allianz, noted in a post on X, “It’s one of those market days where the vast majority of asset classes are down, including stocks, bonds, crypto, and gold. The blame game points to the one asset class that is notably higher today: energy. And for good reason—$100 Brent crude complicates the economic, corporate, and policy outlooks.”

He added that markets should look “Beyond the obvious,” and “keep a close eye on debt and leverage dynamics.”

Trending Stocks To Watch 

Intel Corp. (INTC): The chipmaker was on the retail radar after its shares jumped overnight following strong Q2 results. The company also forecast strong third-quarter (Q3) revenue of $15.8 billion to $16.8 billion, considerably higher than Wall Street expectations. 

Tesla Inc. (TSLA): The EV-maker was on the retail radar after it posted Q2 results on Wednesday that failed to impress investors. Shares dropped more than 14% at close amid a series of Wall Street price target cuts and continued concerns over its blowout capex plans. 

Trade Desk Inc. (TTD): The stock attracted retail attention after its shares fell to a 52-week low of $16.70 as concerns over its growth amid rising competition continued to weigh on investor sentiment. 

Hims & Hers Health Inc. (HIMS): The telehealth company closed up more than 3% on Thursday and continued to climb overnight following a positive FDA advisory committee vote recommending wider access to the BPC-157 peptide. 

Global Market Trends 

While crude oil prices declined marginally late Thursday, Brent crude futures expiring in September continued to trade above $100 a barrel. Meanwhile, WTI crude futures expiring in September were trading at $91.54 per barrel.

Yields on the 10-year Treasury jumped to trade at 4.702%, the highest in over a year. Meanwhile, spot gold prices were at $4,043.45 per ounce. 

“Once again, traders are getting spooked by the rise in bond yields. But the breakdown in bonds is actually bullish for gold, as it reflects soaring federal budget deficits, out-of-control inflation, and a loss of confidence in the creditworthiness of the U.S. Buy the dip!” economist Peter Schiff said in a post on X. 

Asian markets were trading lower at the open on Friday. South Korea's KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks were all in the red at the time of writing. 

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