Dow Jones futures decline on US-Iran peace uncertainty, hawkish Fed signals

Dow Jones futures fall 0.22% below 50,000 during European hours ahead of the United States (US) regular opening on Thursday. Meanwhile, the S&P 500 decline 0.27% to near 7,430, and the Nasdaq 100 futures plunge 0.42% toward 29,250.

US stock futures move lower as traders adopt caution on increased risk aversion due to United States (US)-Iran uncertainty and hawkish Federal Reserve (Fed) monetary policy signals. US President Donald Trump stated that negotiations with Iran were in their final stages. However, Trump reiterated to resume military actions within days if Iran rejects his terms.

The Federal Open Market Committee (FOMC) Minutes for the April meeting, released on Wednesday, indicate that a majority of Federal Reserve (Fed) officials warned that the central bank would likely need to consider raising interest rates if inflation remains persistently above their 2% target. The minutes underscored deepening concerns within the Fed regarding inflation risks driven by the ongoing geopolitical conflict.

Wall Street posted solid gains on Wednesday, driven by falling oil prices and lower Treasury yields following comments from President Trump. The major indices rallied across the board, with the Nasdaq 100 leading the advance by climbing 1.54%, followed closely by the Dow Jones rising 1.31% and the S&P 500 advancing 1.08%.

NVIDIA reported a record-breaking first quarter, generating $81.62 billion in revenue and $58.32 billion in net income, fueled by relentless demand for its AI chips. In tandem with these stellar results, the company raised its dividend and announced a massive $80 billion stock buyback plan. Despite the strong financials, shares dipped slightly in extended trading as investors exercised caution regarding forward guidance and rising market competition.

Intuit Inc. delivered strong third-quarter results, posting $8.6 billion in revenue, a 10% year-over-year increase, and subsequently raising its full-year guidance. However, the positive financial news was contrasted by the announcement of a 17% workforce reduction. Affecting roughly 3,000 positions, the layoffs are part of a broader strategic pivot toward AI integration and enhanced operational efficiency.

Analog Devices, Inc. achieved a record second quarter, reporting $3.62 billion in revenue, which marks a significant 37% increase year-over-year. To further capitalize on market momentum, the company also announced a $1.5 billion acquisition of Empower Semiconductor, a strategic move designed to bolster its AI infrastructure capabilities. 

Looking ahead at upcoming retail and industrial earnings, Walmart is poised to report strong fiscal first-quarter results, with analysts forecasting a 3.85% increase in overall same-store sales and 4% growth in U.S. comps. Conversely, Deere & Company is preparing to release its second-quarter report amid tougher market conditions, with expectations pointing toward a 12.5% year-over-year decline in earnings per share.