Trump says Israel, Lebanon extend ceasefire; Intel soars - what’s moving markets

Investing.com - Futures linked to the main U.S. stock indices hover around both sides of the flatline, while oil remains above $100 a barrel, as disruptions to oil supplies through the Strait of Hormuz continue despite a shaky U.S.-Iran ceasefire and President Donald Trump’s announcement of an extended pause to fighting between Israel and Lebanon. Elsewhere, Intel shares spike in after-hours trading following a sunny outlook from the chipmaker.

1. Futures mixed

U.S. stock futures sought direction on Friday, prior to the end of a trading week that has seen hopes for an imminent U.S.-Iran peace deal fade and oil supply disruptions persist.

By 03:21 ET (07:21 GMT), the Dow futures contract had fallen by 58 points, or 0.1%, S&P 500 futures had risen by 10 points, or 0.1%, and Nasdaq 100 futures had jumped by 172 points, or 0.6%.

The main averages on Wall Street closed lower on Thursday, with sentiment dampened by waning expectations that Washington and Tehran will soon notch an agreement to permanently halt hostilities and reopen the Strait of Hormuz, a vital waterway off of Iran’s southern coast which has been all but shuttered for tanker traffic for weeks.

Still, traders remained upbeat around what has so far been a solid quarterly earnings season for Corporate America. One of the standout performers in the prior session was chipmaker Texas Instruments, whose shares soared by more than 19% after the company reported results and guidance that investors cheered. The returns pulled up other semiconductor stocks as well.

A surge in demand for TI’s analog chips from data centers particularly underlined the ongoing pace of an aggressive spike in tech sector spending on artificial intelligence. Optimism around such heavy AI infrastructure expenditures has helped markets to look beyond economic headwinds from the Middle East and mostly erase losses sparked by the Iran war.

1. Trump announces three-week Israel-Lebanon ceasefire

President Donald Trump said on Thursday that a ceasefire between Israel and Lebanon would be extended for three weeks following a meeting with diplomats from both countries.

However, representatives from Hezbollah, the militant group fighting in Lebanon, were not at the talks, casting some doubt over the longevity of the truce. Firing between Israel and Hezbollah was also reported in the hours before Trump’s announcement.

Earlier this week, Trump also unveiled an indefinite ceasefire between the U.S. and Iran, but maintained an American blockade of Iranian ports.

Uncertainty has surrounded the fragile halt to hostilities. Tehran has responded to the U.S. blockade by moving to demonstrate its grip over the Strait of Hormuz, attacking and seizing ships in the conduit. The U.S. has also seized Iranian-flagged vessels and Trump has said he has ordered the Navy to "shoot and kill" Iranian boats attempting to lay mines in the strait.

U.S. Defense Secretary Pete Hegseth and Gen. Dan Caine, Chairman of the Joint Chiefs of Staff, will hold a press conference at 8 a.m. Eastern time on Friday.

1. Oil climbs

With scant indications that the strait will be reopened soon, oil prices have risen back above $100 a barrel, threatening to exacerbate fears over a spike in inflation and a slowdown in global growth.

At 03:57 ET, Brent crude futures, the global oil benchmark, had risen by 1.2% to $106.30 a barrel. U.S. West Texas Intermediate crude futures, meanwhile, rose by 1.0% to $96.77 a barrel.

Both contracts remain well above pre-war levels, feeding worries over a global energy shock that could force central banks around the world to considering hiking interest rates -- an outcome which could have cascading impact on a variety of financial assets.

"Clarity over the next phase in the Middle East conflict is in short supply, and it now looks as though inflation pressures may be broadening," analysts at ING said in a note.

International Energy Agency Executive Director Fatih Birol warned this week that the prolonged closure of the Strait of Hormuz presents "the biggest energy security threat in history" and has urged governments to find alternative energy sources in response to the crisis.

1. Intel soars

Shares of Intel ripped higher in extended hours trading, gaining more than 21%, after the chipmaker projected a spike in revenue propelled by AI data center demand.

Although Intel has been viewed as one of the companies sitting on the sidelines of the AI boom, its CPU computer brain has become more popular in recent months as more AI firms are hunting for the computing power needed for cutting-edge autonomous "agents."

The company has benefited from a 10% stake from the Trump administration, as well as a move to join Tesla and SpaceX as a strategic partner in a project that includes a chip-fabrication site in Texas.

Against this backdrop, Intel lifted its guidance for current-quarter sales to a range of $13.8 billion to $14.8 billion, well above analysts’ expectations. CEO Lip-Bu Tan said a drive to bring AI closer to end users is "significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings."

1. Final Michigan sentiment survey

On the economic data front, investors will have the chance to parse through the final reading of a survey of consumer confidence for April.

A preliminary consumer sentiment index from the University of Michigan slumped to a record low mark of 47.6 this month, slipping from 53.3 in March and well below analysts’ forecasts.

The survey flagged a deterioration across age, income, and political party affiliation, although the responses were recorded prior to a ceasefire agreement between the U.S. and Iran.

Many consumers blamed the Iran conflict for "unfavorable changes to the economy," said Joanne Hsu, the Director of the Surveys of Consumers.