U.S. stock futures indicated a cautious start to trading on Thursday, with the Dow Jones Industrial Average up 0.4% at 53,287 points and the Nasdaq 100 slightly higher at 29,189, according to broker IG. Analysts cited a lack of structural market direction, noting that equities were largely tracking short-term oil price movements amid ongoing Middle East tensions.
Oil prices resumed their climb after a brief stabilization, reigniting inflation concerns that have weighed on investor sentiment. U.S. President Donald Trump’s assertion that recent strikes on Iran would be short-lived was countered by new attacks by Iran on Kuwait, a U.S. ally. Meanwhile, U.S. Defense Secretary Pete Hegseth extended troop deployments in the region, according to the Wall Street Journal. Traders also awaited Friday’s U.S. nonfarm payrolls report, which could influence expectations for an imminent Federal Reserve rate hike. Helaba economists noted that a stronger-than-expected jobs report might reinforce the case for a near-term rate increase, particularly given rising oil prices.
Among individual stocks, Broadcom shares fell 3.7% in premarket trading after the chipmaker posted quarterly results that met revenue expectations but disappointed on guidance. Snowflake surged 23% after beating earnings and raising its full-year revenue forecast. Ultragenyx Pharmaceutical slumped 46% after a Phase 3 trial for a rare disease treatment failed to meet its primary endpoint. Victoria’s Secret dropped 20% following weaker-than-expected second-quarter revenue of $1.61 billion and a revised 2026 outlook ranging from $7.10 billion to $7.18 billion, below prior guidance.
In Europe, the Swiss Market Index (SMI) gained 0.2%, led by Roche, which rose 1.8%. Nestlé declined 0.8%, while Novartis held steady after Tuesday’s gains. Richemont fell 2.4% as luxury sector weakness persisted, with Swatch down 1.6%. Partners Group rose 2.0% following analyst commentary on its recent results, and Romande Energie advanced 2.1% after reporting a significant first-half profit increase.
The Swiss franc strengthened against the euro, hitting 0.9392 from 0.9410 earlier in the session, and rose to 0.8092 per U.S. dollar. The move followed a surprise jump in Swiss inflation to 0.8% year-on-year in August, the highest since 2022, up from 0.4% in July. Economists had forecast a rise to just 0.5%-0.6%, according to a survey by AWP. The Swiss National Bank (SNB) now faces renewed pressure to address inflationary pressures.
Traders cited the absence of fresh escalation in the Middle East and oil prices holding below $100 per barrel as factors supporting market stabilization. However, geopolitical risks remained a key overhang. U.S. stock futures showed little directional bias, with Dow Jones futures flat and Nasdaq futures down 0.2%. European purchasing managers’ indices, due later in the day, could provide further direction ahead of Friday’s U.S. jobs data, which may offer clues on the Fed’s next policy move.
