FINWIRES · TerminalLIVE
FINWIRES

Stocks Rise Pre-Bell as Investors Assess Renewed Middle East Tensions, Await Jobs Report

By

The benchmark US stock measures were pointing higher before the open Friday as investors weigh renewed tensions in the Strait of Hormuz and await a key employment report for April.

The S&P 500 rose 0.4%, the Dow Jones Industrial Average increased 0.2% and the Nasdaq added 0.6% in premarket activity. The indexes finished the previous trading session down, snapping a two-day winning streak.

The US and Iran exchanged fire in the Strait of Hormuz on Thursday, with both sides accusing each other of initiating the attack, according to several media outlets.

The US Central Command said its forces intercepted "unprovoked" Iranian attacks and carried out "self-defense" strikes, as US navy destroyers transited the crucial waterway to the Gulf of Oman. Iran reportedly accused the US of striking multiple targets in and around the strait.

In a social media post on Thursday, President Donald Trump threatened to strike Tehran "a lot harder, and a lot more violently" in the future if it doesn't agree to a peace deal. Later, Trump told ABC News that the strikes against Iran were "just a love tap" and that the ceasefire between the two countries remains in effect.

"Markets continue to be cautiously optimistic toward the prospect of a US-Iran deal to end the war despite the appearances of the US administration pumping the deal vastly more than the other side," Scotiabank said in a note on Thursday.

West Texas Intermediate crude oil nudged 0.4% higher to $95.18 a barrel before the opening bell, while Brent inclined 0.7% to $100.83.

Treasury yields were trending lower in premarket action, with the two-year rate retreating 2.2 basis points to nearly 3.9% and the 10-year rate off 2.4 basis points to 4.37%.

The nonfarm payrolls report for last month is scheduled to be released at 8:30 am ET. Government data is expected to show that the US economy added 65,000 jobs in April, compared with a 178,000 gain reported for the month prior, according to a Bloomberg poll.

US job cuts increased in April to the third-highest total for the month since 2009 as technology companies continued to announce layoffs amid a shift toward artificial intelligence, Challenger Gray & Christmas said Thursday. On Wednesday, ADP (ADP) said employment in the US private sector grew at its fastest pace in more than a year.

Friday's economic calendar also has the preliminary University of Michigan consumer sentiment report for May at 10 am, while the weekly Baker Hughes oil-and-gas rig count is out at 1 pm.

On Thursday, a US trade court ruled that Trump's 10% global tariffs are not justified under a 1970s trade law, Reuters reported. In February, the Supreme Court invalidated Trump's reciprocal tariffs imposed in 2025 under the International Emergency Economic Powers Act. Following that decision, Trump announced a 10% global tariff, which he later said would rise to 15%.

Shares of Airbnb (ABNB) moved 0.7% higher pre-bell after the vacation rental company reported higher-than-expected first-quarter revenue. Monster Beverage (MNST) climbed 6.5% as the energy drink firm's first-quarter results topped market estimates. CoreWeave (CRWV) fell 6.5% following its latest quarterly results.

Iren (IREN) jumped 8.1% as the company said it secured a five-year artificial intelligence infrastructure cloud services contract with Nvidia (NVDA) worth $3.4 billion.

Gold increased 0.4% to $4,730 per troy ounce, while bitcoin slipped 0.2% to $79,952.

Related Articles

US Markets

Japan Services Activity Hits 11-Month Low as Middle East Conflict Drives Input Costs to One-Year High

Japan's service sector growth slowed to an 11-month low in April as rising costs and weaker demand weighed on activity, while companies raised prices at one of the fastest rates on record, adding to concerns over mounting inflationary pressure ahead of a possible Bank of Japan rate increase.The au Jibun Bank Japan Services PMI business activity index fell to 51 in April from 53.4 in March, marking the weakest expansion since May 2025, according to data compiled by S&P Global Market Intelligence. A reading above 50 indicates growth.New business growth also softened to the slowest pace since October, while export demand contracted for the first time in five months as uncertainty linked to the Middle East conflict and elevated prices weighed on overseas sales.At the same time, input costs rose at the fastest rate in a year, driven largely by higher fuel and import expenses tied to the conflict and a weaker yen. Companies passed those costs on to customers, pushing selling prices to the third-steepest increase since the survey began in 2007.The broader composite PMI, which combines manufacturing and services activity, eased to 52.2 from 53, though manufacturing output expanded at the fastest pace in more than 12 years amid front-loaded demand."Underlying data indicated that the slowdown stemmed from more subdued growth across the service sector, as manufacturers reported the quickest rise in output in over 12 years amid reports of front-loading due to thewar in the Middle East," said S&P Global Market Intelligence's Economics Associate Director Annabel Fiddes.The data adds to signs that Japan's economy is entering a more difficult phase for policymakers, with slowing activity coinciding with persistent inflation pressure."The business mood continued to be dampened by lingering uncertainty over the war and the possibility of future price hikes and softer customer demand. Notably, optimism around the year-ahead slipped to the lowestsince the COVID-19 pandemic in August 2020," Fiddes added.Separate government data showed real wages in March rose 1% from a year earlier for a third straight monthly increase, while nominal wages climbed 2.7% to 317,254 yen. However, wage gains continued to lag inflation, with consumer prices rising 1.6%.The combination of softer services demand and accelerating price pressures could complicate the Bank of Japan's policy outlook as markets increasingly price in a possible rate increase in June. The central bank kept interest rates unchanged in April but warned that inflation could overshoot expectations as companies continue shifting toward higher wages and prices.

Nikkei 225
US Markets

S&P 500, Nasdaq Snap 2-Day Record Run as Oil Prices Rise in Volatile Session

The S&P 500 and the Nasdaq Composite fell from record closing highs on Thursday as oil prices rose in what turned out to be a choppy trading session for crude.The S&P 500 closed 0.4% lower at 7,337.1, while the Nasdaq slipped 0.1% to 25,806.2. The Dow Jones Industrial Average dropped 0.6% to 49,597. All three indexes snapped a two-day advance that propelled the S&P 500 and the Nasdaq to all-time highs.Barring communication services and technology, all sectors were in the red, led by materials and energy.West Texas Intermediate crude was last up 0.7% at $95.73 a barrel, swinging between gains and losses during Thursday late-afternoon trade. Brent was up 0.1% at $101.36. Both benchmarks fell sharply Wednesday amid prospects of a diplomatic breakthrough between the US and Iran.Iran is still reviewing "messages" from the US via Pakistani mediation, CNN reported, citing Iranian media. Tehran has set out new rules for ships looking to transit ross the crucial Strait of Hormuz, the news outlet reported."Markets continue to be cautiously optimistic toward the prospect of a US-Iran deal to end the war despite the appearances of the US administration pumping the deal vastly more than the other side," Scotiabank said in a note.US Treasury yields were higher, with the 10-year rate up 4.5 basis points at 4.40% and the two-year rate rising 5.4 basis points to 3.92%.In company news, Tapestry (TPR) raised its fiscal 2026 outlook after delivering a third-quarter beat, but provided a subdued fourth-quarter sales guidance for its Kate Spade brand. The luxury fashion company's shares slumped 12%, the second-worst performer on the S&P 500.Planet Fitness (PLNT) shares slid 31% after the fitness center operator tempered its full-year expectations amid fewer-than-projected member additions in the first quarter.Shake Shack (SHAK) shares plummeted 28% after the fast food chain operator's first-quarter results fell short of Wall Street's estimates amid weather-related headwinds.Datadog (DDOG) shares surged 31%, the top gainer on the S&P 500. The software maker raised its full-year outlook after posting first-quarter results that topped the Street expectations.In economic news, US job cuts increased in April to the third-highest total for the month since 2009 as technology companies continued to announce layoffs amid a shift toward artificial intelligence, Challenger Gray & Christmas said Thursday.The report comes ahead of the official April nonfarm payrolls data to be released on Friday.Official data are expected to show that the US economy added 65,000 nonfarm jobs in April, compared with a 178,000 increase reported for the previous month, according to a Bloomberg-compiled consensus. On Wednesday, ADP (ADP) said that employment in the US private sector grew at its fastest pace in more than a year.Gold was up 0.3% at $4,709.90 per troy ounce in Thursday late-afternoon trade, while silver jumped 2.7% to $79.40 per ounce.

Dow JonesNasdaq CompositeS&P 500$ADP$DDOG$PLNT$SHAK$TPR
US Markets

Airbnb Trails First-Quarter Earnings Views, Beats on Revenue Amid Demand Strength

Airbnb's (ABNB) first-quarter earnings lagged Wall Street's estimates, while the vacation rental company reported higher-than-expected revenue amid demand momentum.Earnings per share rose to $0.26 from $0.24 a year earlier, but trailed the FactSet-polled consensus of $0.30. Revenue increased 18% year-over-year to $2.68 billion, above the Street's $2.62 billion view.Revenue benefited from strong growth in nights stayed and "a meaningful increase" in average daily rate, Airbnb said in a shareholder letter.Gross booking value, which includes host earnings, service and cleaning fees and taxes, advanced 19% annually to $29.2 billion, compared with $27.82 billion modeled by analysts.Nights and seats booked grew 9% to 156.2 million, compared with the Street's 155.8 million view. The metric represents the total number of nights booked for stays and seats booked for services and experiences, net of cancellations and alterations."We're navigating a period of macroeconomic and geopolitical uncertainty," the company said. "We saw that show up in slightly elevated cancellations this quarter in (Europe, the Middle East, and Africa) and Asia Pacific, primarily driven by the conflict in the Middle East."For the second quarter, Airbnb forecast revenue of $3.54 billion to $3.60 billion, reflecting annual growth of 14% to 16%. The consensus is for $3.46 billion.Gross booking value is seen rising in the low-double-digit range amid gains in nights and seats booked, Airbnb said.The company expects the full-year revenue growth to accelerate to low to mid-teens, compared with the prior outlook that called for growth of at least low double digits. The consensus indicates $13.71 billion in revenue this year.Shares rose 1.8% in after-hours trade. The stock is up about 3.5% since the start of the year through Thursday's close.

$ABNB