Dow Futures indicated a downward trajectory, as market participants anticipate a new set of U.S. economic indicators and corporate earnings disclosures. Gauges of producer prices and retail sales are set to be released, alongside quarterly figures from Walmart and Alibaba. Meanwhile, oil prices decline as U.S. President Donald Trump indicates that a nuclear agreement with Iran could be imminent. U.S. stock futures experienced a decline on Thursday after a session characterized by mixed trading, as investors anticipated new economic data alongside a diminishing stream of corporate earnings reports.

The Dow futures contract experienced a decrease of 219 points, representing a 0.5% decline, while S&P 500 futures fell by 21 points, equivalent to a 0.4% drop, and Nasdaq 100 futures saw a reduction of 75 points, also reflecting a 0.4% decline. The S&P 500 recorded a modest increase on Wednesday, with the benchmark average advancing by 6 points, equivalent to 0.1%. The tech-heavy Nasdaq Composite experienced an increase of 137 points, representing a 0.7% rise, whereas the blue-chip Dow Jones Industrial Average saw a decline of 89 points, equivalent to a 0.2% drop.

Analysts at Vital Knowledge observed that indications of robust economic activity, persistent inflation concerns driven by tariffs, and apprehensions regarding the ongoing discussions surrounding the U.S. budget bill contributed to an increase in U.S. Treasury yields, which in turn exerted pressure on equities. Nonetheless, the session remained relatively subdued, especially in contrast to the recent fluctuations driven by trading activities. Earlier in the week, equities surged following the announcement of a trade agreement between the U.S. and China, which enhanced expectations for a de-escalation of tensions between the world’s two largest economies.

On the economic calendar, markets are expected to closely monitor producer price and retail sales data scheduled for Thursday. Data from the Labor Department’s Bureau of Labor Statistics is expected to indicate that the producer price index for final demand rose by 0.2% on a month-over-month basis in April. In March, the PPI experienced its first decline since 2023, influenced in part by a decrease in gasoline prices. Concerns that reciprocal tariffs could trigger a worldwide economic slowdown have negatively impacted oil prices. The year-over-year measure is projected to decline to 2.5%, down from the previous level of 2.7%.

Additionally, on Thursday, the U.S. Census Bureau is set to release retail sales figures. A notable increase in purchasing activity prior to the enforcement of Trump’s stringent tariffs resulted in the most significant rise in the metric observed in over two years during March. Separate surveys have indicated that households have broadly anticipated that the levies will lead to an increase in prices. In other news, Federal Reserve Chair Jerome Powell is scheduled to speak at a conference in Washington, D.C. Last week, the Federal Reserve maintained its current interest rates, with Powell highlighting the robustness of the overall economy while acknowledging increasing concerns regarding inflation and unemployment.

The state of the American consumer is poised for further evaluation as Walmart prepares to disclose its most recent quarterly results ahead of the commencement of U.S. trading. A large retail corporation recognized for its competitive pricing and extensive product range, Walmart has emerged as a significant indicator of consumer sentiment. In February, the company provided a pessimistic outlook for the year, although CFO John David Rainey noted that American consumers continue to exhibit “resilience” and a focus on value. Rainey noted that Walmart’s outlook did not take into account the effects of U.S. tariffs, even though the group reaffirmed its outlook during an analyst meeting on April 9 — importantly, after Trump revealed his increased “reciprocal” tariffs on various countries at a White House event. In the first quarter, U.S. comparable sales at Walmart, excluding gasoline, are projected to have increased by 4.1%, as per Bloomberg consensus estimates. Projected adjusted per-share earnings stand at $0.58, accompanied by revenue expectations of $166.02 billion.

Trump has indicated that the U.S. is nearing a nuclear deal with Iran, noting that Tehran had “sort of” consented to the terms of an agreement. According to coverage by AFP, Reuters has reported that Trump characterized negotiations with Iran for “long-term peace” as “very serious”. Trump is presently engaged in a multi-day tour of the Gulf region. U.S. and Iranian negotiators engaged in new discussions on Sunday to address ongoing disputes regarding Tehran’s nuclear program, with officials indicating intentions to schedule further negotiations. Iran has indicated that it is persisting in its uranium enrichment activities. The protracted disagreement between Washington and Tehran regarding Iran’s nuclear program continues, with negotiators reportedly still at odds over several significant issues. An Iranian official indicated in an interview with NBC News published on Wednesday that Iran is prepared to reach an agreement with the U.S. contingent upon the removal of economic sanctions.

Oil prices experienced a significant decline on Thursday, continuing a trend of recent losses. This downturn was influenced by increasing expectations surrounding a possible U.S.-Iran nuclear agreement, which contributed to concerns regarding demand in light of an unexpected rise in U.S. inventories. Brent futures experienced a decline of 3.1%, settling at $64.06 per barrel, while U.S. West Texas Intermediate crude futures decreased by 3.2%, reaching $61.12 per barrel. Both benchmarks experienced a decline of nearly 1% on Wednesday, thereby concluding a four-day rally and retreating from the two-week peak attained earlier in the week.

A U.S.-Iran nuclear agreement might enable Tehran to increase its crude exports to the global market, thereby affecting the equilibrium of supply and demand for crude oil worldwide. Furthermore, data from the Energy Information Administration indicated that crude stockpiles increased by 3.5 million barrels in the week ending May 9, implying a potential cooling of demand in the world’s largest energy consumer.