Wall Street set for pullback as ceasefire doubts lift oil prices

• Dow futures down 0.4%, S&P 500 and Nasdaq 100 futures off 0.4% and 0.3% respectively, reversing Wednesday's relief rally
• Only 3 ships passed through Strait of Hormuz on Wednesday with approximately 800 tankers waiting, supporting oil prices above $97/barrel
• Applied Digital shares fell in premarket despite earnings beat due to lack of new hyperscaler deals; $22 billion auction of 30-year Treasurys scheduled

Market Summary: Wall Street Set for Pullback on Ceasefire Doubts

Market Movement:

U.S. stock futures retreated Thursday morning, with Dow Jones futures down 0.4%, S&P 500 futures off 0.4%, and Nasdaq 100 futures declining 0.3%. This pullback follows Wednesday's strong relief rally driven by Middle East ceasefire hopes.

Geopolitical Developments:

Optimism surrounding Middle East tensions is fading despite scheduled U.S.-Iranian negotiations in Islamabad. Ongoing Israeli strikes in Lebanon and President Trump's commitment to maintaining U.S. troops in the region until a "real agreement" is reached continue to weigh on investor sentiment.

Energy Markets:

Brent crude remains elevated above $97 per barrel due to supply disruptions at the Strait of Hormuz. According to XTB's Kathleen Brooks, only three ships passed through the strait on Wednesday, while approximately 800 tankers remain in waiting, suggesting persistent supply constraints.

Corporate News:

Applied Digital shares are under pressure in premarket trading. While the data-center developer reported an earnings beat, the absence of new hyperscaler deals disappointed investors seeking fresh growth catalysts.

Economic Data Ahead:

A heavy data calendar includes weekly jobless claims, the February personal consumption expenditures (PCE) index, and the second revision to Q4 GDP, all releasing at 8:30 a.m. ET. Wholesale inventories follow at 10:00 a.m.

Fixed Income:

Markets face a $22 billion auction of 30-year Treasurys, which will test demand amid ongoing inflation concerns.

Market Implications:

The pullback reflects renewed geopolitical risk premium and uncertainty around Middle East stability, with oil supply disruptions likely to support elevated energy prices and potentially pressure equity markets.