US Stock Market Rises as Big Tech Earnings Offset Oil Price Concerns

US Stock Market Futures Point to Higher Opening Amid Earnings and Oil Price Volatility

US stock market futures are poised for a higher opening on Thursday, 30 April, as upbeat earnings from select technology giants offset concerns over strengthening crude oil prices and rising tensions in West Asia. The futures markets are reflecting this mixed sentiment, with the S&P 500 futures rising about 0.7%, while Nasdaq Composite futures climbed 0.2%. Dow Jones Industrial Average futures advanced roughly 334 points, or 0.2%.

The potential for a long-term peace deal between Iran and the US has faded after Axios reported that US President Donald Trump was scheduled to receive a briefing on fresh plans for possible military action against Iran. According to the report, US officials have prepared a proposal for a "short and powerful" round of strikes on Iran, which could include attacks on key energy infrastructure. This development has further eroded hopes of a full reopening of the Strait of Hormuz, where the flow of oil and other critical supplies has remained severely disrupted for more than two months.

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The Federal Reserve's policymaking Federal Open Market Committee left benchmark interest rates unchanged on Wednesday, and for now, made no change to its forward guidance on the future path of rates. Despite the war-related escalation with Iran pushing up oil prices and fuelling gasoline and broader inflation concerns, the FOMC continued to signal that its next policy move is still more likely to be a rate cut at some point rather than a hike.

Brent crude futures for June delivery advanced more than 3% to $121.09 a barrel after hitting an intraday high of $126.41 earlier on Thursday, its highest level since 2022, and remained on track for a ninth straight session of gains. Oil prices have now surged more than 100% this year.

Stocks in focus today include Alphabet, which jumped over 7% in premarket trade after beating expectations, and Amazon, which moved higher on solid quarterly results. However, not everything went right, with Microsoft slipping after its cloud growth disappointed lofty expectations, and Meta Platforms falling as investors questioned whether its aggressive AI spending is running ahead of returns.

The market is being pulled in two opposite directions, with AI delivering a growth story investors want to believe in, and geopolitics creating an inflation problem nobody can ignore. The Federal Reserve did little to simplify the outlook, leaving markets to dial back expectations of interest rate cuts anytime soon.

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