United States stock futures traded slightly lower on Wednesday night (Thursday AEST) after the S&P 500 and Nasdaq Composite closed at fresh record highs during regular trade, supported by optimism that the United States and Iran may be nearing an agreement to end the ongoing conflict.
By 9:45 am AEST (11:45 pm GMT) Dow futures, S&P 500 futures, and Nasdaq 100 futures each declined by 0.1%.
In extended trading, Arm Holdings dropped 5.3% after issuing weaker-than-expected guidance. The chip designer forecast first-quarter earnings of 40 cents per share, plus or minus 4 cents, on revenue of $1.26 billion, plus or minus $50 million.
That compared with FactSet estimates of 37 cents per share on revenue of $1.25 billion.
DoorDash shares jumped 10.4% after the food delivery company issued upbeat guidance for second-quarter orders. DoorDash projected marketplace gross order value between $32.4 billion and $33.4 billion, slightly ahead of market expectations of $32.43 billion.
The company also reported first-quarter earnings per share of $0.42, ahead of estimates of $0.36. Revenue came in at $3.03 billion.
Zillow Group declined 6.4% despite reporting quarterly results that beat analyst expectations overall. Investors focused on first-quarter residential revenue, which totalled $450 million, below StreetAccount estimates of $454.2 million.
Snap shares fell 9.3% after the social media company issued cautious second-quarter sales guidance. Snap forecast revenue between $1.52 billion and $1.55 billion, with the midpoint roughly in line with expectations of $1.54 billion.
During Wednesday’s regular session, the Dow Jones Industrial Average surged 612.34 points, or 1.24%, while the broader S&P 500 and Nasdaq Composite climbed 1.5% and 2%, respectively, with both indexes reaching new all-time highs.
Investor sentiment improved after Axios reported, citing sources, that the United States and Iran were nearing a deal to end the conflict.
According to the report, the White House believes it is close to finalising a one-page, 14-point memorandum of understanding that would both end the war and establish a framework for broader nuclear negotiations.
However, stocks pulled back from session highs after President Donald Trump said in a Truth Social post that a deal had not yet been finalised, calling it “perhaps, a big assumption” that Iran would accept the proposal.
Trump also warned that military strikes could resume if Tehran failed to comply.
Markets will now turn their attention to another busy earnings session on Thursday, with results expected before the opening bell from McDonald’s, Shell, Planet Fitness, Datadog, Tripadvisor, Unity Software and Valvoline.
Investors will also monitor upcoming economic data releases, including construction spending, consumer credit, weekly jobless claims and preliminary first-quarter readings on unit labour costs and productivity.
