Global Markets Brace for Key U.S. Economic Data Amidst Geopolitical Tensions and Mixed Corporate Earnings

U.S. equity futures nudged slightly higher in early Thursday trading, building on a recent rally fueled by signs of moderating inflation, a dip in Treasury yields, and a series of encouraging corporate earnings reports.

Futures contracts for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 each recorded a modest gain of 0.1%. This followed a positive close on Wednesday, where the Dow climbed 0.3% to 52,659.18, the S&P 500 advanced 0.4% to 7,572.43, and the tech-heavy Nasdaq Composite rose 0.6% to 26,269.23.

Traders work at the New York Stock Exchange on July 15, 2026.

NYSE

The global market landscape, however, presented a mixed picture. Asian markets saw significant fluctuations, with South Korea's Kospi plunging over 7% and the small-cap Kosdaq falling 5%. Japan's Nikkei 225 declined 3%, while the Topix was down 1.19%. Conversely, Hong Kong's Hang Seng index gained 1.31%, though the CSI 300 lost 0.55%. Australia's S&P/ASX 200 also edged lower by 0.3%.

Optimism over cooling inflation gained traction after a softer-than-expected U.S. producer price index report. This has provided a measure of comfort to investors, suggesting the Federal Reserve might maintain its current interest rate stance. Further underpinning market confidence, robust earnings from key financial institutions reaffirmed that corporate growth remains resilient despite easing inflationary pressures. Lower Treasury yields additionally stimulated demand for growth-oriented stocks, particularly within the mega-cap technology sector.

Michael Kantrowitz, chief investment strategist at Piper Sandler, emphasized the critical role of interest rates for broader market participation. "In order for the market to broaden, I believe full stop that you need rates to either move sideways or decline," he stated on CNBC's "Closing Bell: Overtime." He added, "The best backdrop for the equity market in today's regime would be employment that stays more or less sluggish because I think that can help keep a lid on interest rates and prevent any rate hikes."

Today, market participants keenly await the release of retail sales data and jobless claims at 8:30 a.m. ET. These figures will offer crucial insights into the pace of economic slowdown, helping to determine if inflation can be managed without triggering a significant downturn. Corporate earnings also remain a central focus, with UnitedHealth scheduled to report before the opening bell and Netflix set to release its results after the market closes.

European Markets See Mixed Open

European stocks opened marginally lower on Thursday. The pan-European Stoxx 600 index dipped slightly by 8:06 a.m. London time (3:06 a.m. ET). France's CAC 40 led the declines with a 0.4% pullback, though tech stocks bucked the trend, with the Stoxx 600 Technology index adding 0.5% in early trading. — Chloe Taylor

Uber's Takeover Bid Sends Delivery Hero Shares Lower

Shares in Delivery Hero fell approximately 1% following news that Uber had launched a takeover offer for the German food delivery firm. The deal values Frankfurt-listed Delivery Hero at 41.50 euros ($47.59) per share, and includes Dutch technology investor Prosus offloading its nearly 17% stake to Uber. To avoid operational overlap, Delivery Hero will also sell its businesses in 14 markets to SSW Partners for $1.4 billion. This improved offer comes after an earlier 38 euro-per-share bid from Uber was rejected by a major Delivery Hero shareholder in May. — Hugh Leask

UK Economy Posts Modest Growth in May

The U.K. economy expanded by 0.1% in May, aligning with Reuters' consensus estimates. This follows a 0.1% contraction in April and a 0.3% growth in March. The Office for National Statistics reported that May's slight gross domestic product expansion was primarily driven by a 0.3% growth in services, partially offset by declines of 0.5% in production and 0.8% in construction. — Chloe Taylor

A tourist shelters under an umbrella on Westminster Bridge in London.

Chris J. Ratcliffe | Bloomberg | Getty Images

European Markets Anticipated to Open Positive

Early indications suggested European markets were poised for a marginally positive open on Thursday, as investors continued to monitor developments in the Middle East and their potential impact on risk assets. Stoxx 50 futures were projected to start 0.37% higher, with French CAC 40 futures up 0.11% and Germany's DAX seen gaining 0.07%. The Italian FTSE MIB was also expected to open 0.06% higher. However, futures for the U.K.'s FTSE 100 were down 0.31%, predominantly influenced by several energy majors as oil prices eased overnight. Brent crude, the global benchmark, was last seen 0.54% lower at $84.49 per barrel, while U.S. West Texas Intermediate futures declined 0.36% to $79.30. — Hugh Leask

The Eiffel Tower and Seine River at sunrise in Paris.

Alexander Spatari | Moment | Getty Images

Safe-Haven Assets Dip Amid Geopolitical Concerns

Traditional safe-haven assets saw declines on Thursday, despite renewed hostilities between the U.S. and Iran over the weekend raising geopolitical concerns. The 10-year U.S. Treasury yield edged up 1 basis point to 4.557%, while spot gold fell 0.7% to $4,033.50 an ounce. Silver also dropped 1.2% to $57.05 per ounce. — Justina Lee

Alibaba and Baidu Rally on Apple AI Partnership News

Shares of Chinese tech giants Alibaba and Baidu climbed in Hong Kong on Thursday, propelled by news of their collaboration with Apple to integrate their AI tools. Hong Kong-listed shares of Alibaba surged 5% after the company confirmed that its Qwen AI model would be integrated into Apple Intelligence experiences across iOS, iPadOS, macOS, and vision OS for users in China. Baidu's Hong Kong-listed shares also gained 1.4%, as the company confirmed its partnership with Apple on Apple Intelligence features for iPhones in China. — Justina Lee

Oil Prices Rise on Heightened U.S.-Iran Tensions

Oil prices saw an uptick on Thursday, driven by escalating Iran-U.S. tensions that fueled worries about a prolonged Middle East conflict. However, gains were somewhat capped by signals that a diplomatic resolution might still be possible. Futures for international benchmark Brent crude for September delivery advanced 0.19% to $85.11 a barrel, while U.S. West Texas Intermediate futures for June climbed 0.40% to $79.92 per barrel. U.S. President Donald Trump indicated on Wednesday that Iran "wants to meet and make a deal," even as the U.S. military conducted fresh strikes targeting Iranian military capabilities in the Strait of Hormuz. June Goh, a senior oil analyst at Sparta Commodities, noted that while Brent and WTI have corrected upwards in line with escalating attacks, "the quantum of move is likely now tempered as the market waits to see any change in stance from the U.S. and Iran." — Justina Lee

SK Hynix Plunges Amidst Asian Tech Rout

Asian semiconductor stocks experienced a significant sell-off on Thursday, mirroring losses seen in U.S. chipmakers. Shares of SK Hynix tumbled over 11% in Seoul, reversing an 8% rally from the previous session, as investors locked in profits amid growing concerns over AI spending. Its domestic rival Samsung Electronics dropped more than 7%. The weakness spread across the region, with Japan's AI-linked equipment makers like Advantest falling over 6%, SoftBank Group sliding nearly 7%, Tokyo Electron losing over 5%, and Renesas Electronics declining 4%. This downturn tracked overnight losses in U.S. semiconductor shares, where Micron Technology sank 8%, Intel lost over 4%, and both Lam Research and Advanced Micro Devices each fell approximately 3%. — Lee Ying Shan

Bank of Korea Raises Rates for First Time in Over Three Years

South Korea's central bank delivered its first benchmark policy rate hike since January 2023 on Thursday, raising rates by 25 basis points to 2.75%. This move, consistent with median estimates from economists polled by Reuters, comes as headline inflation in the country reached 3.2% in June, its highest since 2023. The Bank of Korea had previously expressed concerns that large performance bonuses in the IT sector could broaden into wider wage increases, contributing to upward pressure on inflation. — Lim Hui Jie

South Korean Shipbuilders Rally on U.S. Naval Buildout Optimism

Shares of South Korean shipbuilders rallied on Thursday following reports that U.S. President Donald Trump indicated his administration would "probably" consider South Korean firms for the planned U.S. naval buildout. HD Korea Shipbuilding & Offshore Engineering saw its shares rise over 3%, Hanwha Ocean was up 2.2%, and Hyundai Heavy added 0.9%. This comes after South Korea passed a special bill in March to establish a state-run investment corporation to manage a planned $350 billion investment into the U.S., which includes $150 billion towards shipbuilding. — Justina Lee

BHP Group Shares Fall on Impending Labor Strike Report

Shares of Australian mining giant BHP Group fell 2.8% amidst reports of an impending labor strike by hundreds of its workers at Port Hedland. This significant industrial action, described as the most impactful in the Western Australian mining industry in three decades, follows a failure to reach an agreement on a four-year labor deal. The news comes after BHP recently reported a strong operational review for its fiscal year ended June, highlighting robust cost control and a $900 million investment into the Western Australia Iron Ore industry. — Justina Lee

Asia-Pacific Markets Open Lower, Led by South Korea

Asia-Pacific markets opened broadly lower on Thursday, with South Korea's Kospi leading the regional declines, falling more than 5%. The small-cap Kosdaq also dropped 1.97%. In Japan, the benchmark Nikkei 225 fell 2.4%, and the Topix declined 0.9%. Australia's S&P/ASX 200 opened flat. — Lee Ying Shan

Asia-Pacific Markets Set for Mixed Open Amidst Geopolitical Weighing

Asia-Pacific markets were poised for a mixed open on Thursday, as investors assessed a complex geopolitical landscape featuring ongoing U.S.-Iran hostilities alongside signs of potential diplomatic engagement. Despite U.S. military strikes against Iranian targets, President Donald Trump stated Wednesday that Iran had "expressed a willingness to negotiate." However, defense analysts note that there is little indication that the latest escalation is nearing a diplomatic resolution. Japan's Nikkei 225 futures pointed to a lower open (67,890 against a close of 68,751.51), while Hong Kong's Hang Seng index futures suggested a higher open (24,829 compared to a 24,681.1 close). Futures for Australia's S&P/ASX 200 were slightly lower (8,821 against a close of 8,841.1). — Lee Ying Shan

Stocks Making Significant Moves After Hours

After Wednesday's closing bell, several stocks made notable moves:

• United Airlines (UAL): Shares dropped more than 2%. Despite exceeding earnings estimates, the airline issued softer-than-expected third-quarter guidance of $2.50 to $3.50 per share, falling short of FactSet estimates of $3.53. The company also projected an additional $6 billion in fuel costs.
• J.B. Hunt Transport Services (JBHT): The stock surged nearly 7%. The logistics company reported earnings per share of $1.73, surpassing analyst estimates by 18 cents, according to LSEG. Revenue of $3.5 billion was in line with estimates of $3.25 billion, with management citing increased demand for its intermodal service throughout the quarter.

— Tanaya Macheel

U.S. Stock Futures Open Flat

U.S. equity futures opened with little change on Wednesday night. Futures tied to the Dow Jones Industrial Average ticked lower by 11 points (0.02%), while S&P 500 futures added 0.01% and Nasdaq 100 futures were up 0.06%. — Tanaya Macheel