Dow Futures are showing an uptick, suggesting a potential rebound on Wall Street after a significant decline in the previous trading session. The U.S. and Iran have engaged in a new series of strikes, despite media reports indicating that the two nations conducted discussions overnight. Oil prices have declined, pulling back from an earlier surge following the second wave of attacks this week. Oracle shares declined by over 9% following the company’s announcement of plans to secure funding for its artificial intelligence initiatives, coinciding with expectations that the European Central Bank will increase interest rates to address inflationary pressures associated with Iran.

Dow futures indicated an upward trajectory on Thursday, implying a potential recovery on Wall Street following a decline in shares during the previous session, driven by rising inflation data and escalating conflict in the Middle East. By 03:13, the Dow futures contract had increased by 215 points, or 0.4%, the S&P 500 futures had advanced by 38 points, or 0.5%, and the Nasdaq 100 futures had climbed by 230 points, or 0.8%. The Dow Jones Industrial Average tumbled to its worst day since October, shedding 1.9%. The tech-heavy Nasdaq Composite dropped 2%, while the benchmark S&P 500 retreated by 1.6%, marking its lowest close in five weeks. Driving the increase was President Donald Trump’s assertion that Iran would “pay the price!!!” for prolonged peace negotiations with Washington, alongside a renewed exchange of strikes between the two nations and persistent clashes in Lebanon involving Israel and Hezbollah militants supported by Tehran. Simultaneously, a gauge of U.S. consumer price inflation escalated to its highest rate in years, highlighting the effects of a surge in energy prices attributed to the conflict in Iran. A distinct measure of producer price expansion is scheduled for release on Thursday. “With signs of a near-term resolution fading, investors grew more concerned about the stagflationary scenarios again, with bonds and equities selling off on both sides of the Atlantic,” analysts at Deutsche Bank stated. Concerns also persisted regarding the sustainability of the artificial intelligence boom. Shares of Super Micro Computer experienced a significant decline following the company’s move to enter the market seeking billions in new equity, aligning with a growing trend among AI-related firms. Analysts have expressed concerns that this development may indicate challenges for companies in financing the extensive infrastructure required to support the emerging technology.

The U.S. and Iran engaged in reciprocal air strikes for the second consecutive day on Thursday, as President Donald Trump issued a cautionary statement regarding potential further measures against Tehran should it fail to promptly agree to a peace accord. The U.S. executed a series of military strikes on various targets in Iran during the late hours of Wednesday and into Thursday, according to a statement from Central Command. The attacks were characterised as acts of “self-defense” following the incident involving the downing of an American helicopter in proximity to the Strait of Hormuz. CENTCOM announced the completion of its most recent series of strikes targeting Iran. Iran responded by executing strikes on multiple U.S. military installations and allied positions in the Gulf, with reports of explosions audible in Kuwait, Bahrain, and Jordan. However, immediate confirmation of these incidents remains unverified, as per media sources.

Oil prices reversed earlier gains, dipping below the flatline, as investors assessed an unverified report indicating that U.S.-Iran peace negotiations were still progressing despite ongoing hostilities. Source reported, citing a diplomatic source, that discussions took place overnight. As of 03:30, Brent crude futures expiring in August, the global benchmark, had decreased by 0.6% to $92.59 per barrel, while West Texas Intermediate crude futures had seen a decline of 0.5% to $89.58 per barrel. Both contracts experienced an increase exceeding 2% during early Asian trading, bolstered in part by Tehran’s declaration of a cessation of all vessel traffic through the Strait of Hormuz — a statement that has been refuted by the U.S. military. Oil prices concluded the previous session with an increase of nearly 2%.

Oracle reported a quarterly performance that exceeded expectations for both revenue and earnings, while also increasing its forecast for annual adjusted profit per share. However, shares declined in after-hours trading following the company’s announcement that it anticipates raising $40 billion in financing for the fiscal full-year 2027. This release is satisfactory, reflecting ongoing strong growth in backlog, and the cash performance was not as negative as anticipated, attributed to reduced capital expenditures. However, the company continues to encounter significant cash outflows as it develops the necessary infrastructure to address its backlog, which will necessitate additional debt and equity, analysts noted in a report. The firm based in Austin, Texas, has in recent years shifted its focus towards cloud computing infrastructure, while its core offerings, including database software and enterprise applications for finance, continue to generate revenue. However, concerns have proliferated regarding the potential effects that artificial intelligence may exert on ORCL’s fundamental operations. Oracle has sought to address investor apprehensions by positioning itself as a significant contributor to the advancement of data centers tailored for AI workloads. However, the extent of debt the company has been accumulating to finance its data center aspirations has faced significant scrutiny.

Elsewhere, the European Central Bank is expected to increase interest rates at the conclusion of its latest two-day meeting later today, as policymakers strive to contain an energy-driven inflation surge associated with the Iran conflict. The rate of price gains in the Eurozone currency area is currently exceeding 3%, surpassing the ECB’s 2% target, thereby strengthening the argument for the central bank’s first rate hike in nearly three years. The increase would elevate the ECB’s key deposit rate to 2.25%, up from 2.0%. Yet, with data indicating subdued growth in the 21-member Eurozone, ECB officials may be cognisant of the implications surrounding the decision. On the activity side, we have already seen a weak batch of German factory orders data for April today, and the risk is that eurozone manufacturing activity data now starts to deteriorate after hoarding/inventory building earlier this year around the uncertainty of the Gulf conflict’, analysts noted.