Markets turn cautious: Dow, Nasdaq futures dip on shaky US-Iran ceasefire

US stock futures slipped on Thursday, giving up part of the previous session’s sharp gains, as investors tracked developments around the fragile US-Iran ceasefire and rising oil prices.

Futures linked to the S&P 500 and Nasdaq 100 fell 0.3% and 0.2%, respectively, while Dow Jones Industrial Average futures dropped 175 points, or 0.4%.

The decline comes after a strong rally on Wednesday, when the S&P 500 jumped 2.5%, the Nasdaq surged 2.8%, and the Dow gained over 1,300 points for its best session since April 2025.

Wednesday's rally was led by a tentative two-week ceasefire agreement between the US and Iran aimed at reopening the Strait of Hormuz, a critical global oil route that has remained largely shut for weeks. However, uncertainty around the agreement persists, with reports of ongoing regional tensions and limited vessel traffic through the strait.

Oil prices moved higher again, weighing on equities. West Texas Intermediate crude rose 5% to above $99 per barrel, while Brent crude gained 4% to trade above $98.

Investors are also awaiting key macroeconomic data, including the US personal consumption expenditure (PCE) index and weekly jobless claims, both due later in the day.