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* Futures: Dow, S&P 500 flat, Nasdaq up 0.14%
April 15 (Reuters) - U.S. stock index futures were
largely unchanged on Wednesday as investors caught their breath
after a rally, while awaiting fresh signals from a raft of
corporate earnings and remarks from Federal Reserve officials.
Hopes that Washington and Tehran could return to the negotiating
table have supported equities this week, despite the U.S.
military blockade of Iranian ports.
The resilience suggests that war-weary investors stand ready
to rotate into risk assets at the slightest hint of
de-escalation.
At 05:00 a.m. ET, Dow e-minis and U.S. S&P 500
E-minis were flat, while Nasdaq 100 E-minis rose
35.5 points, or 0.14%.
The benchmark S&P 500 index, however, is nearing its
first intraday record high since the conflict erupted.
BANK RESULTS IN SPOTLIGHT
Another busy day for corporate earnings will be scrutinized
for clues on how companies are navigating the impact of the war.
Investors are due to hear from Bank of America ( BAC ), the
second biggest U.S. lender, and Wall Street heavyweight Morgan
Stanley ( MS ) on Wednesday.
Their shares were up 0.4% and 0.1%, respectively, in the
premarket session ahead of earnings.
So far this week, banks have said that U.S. consumers are
financially healthy and that pipelines for IPOs and deals should
remain robust unless the conflict drags on for much longer.
Still, some analysts warn that as stocks climb, they may
become more vulnerable to sharp reversals if developments in the
Middle East do not match the optimistic assumptions many are
pricing in.
"U.S. equities appear to be looking through risks still
being priced in commodity markets," BofA Global Research
analysts wrote.
"With the ceasefire appearing fragile and signs of stress in
commodity markets still evident, the equity retracement appears
to be looking through the risks of re-escalation."
Oil prices fell on Wednesday but remain 31% above pre-war
levels.
The International Monetary Fund cut its outlook for global
growth on Tuesday, citing the war-driven energy price spikes. An
extended conflict could also push the world to the brink of a
recession, it warned.
Additionally, traders will hear commentary from Federal
Reserve Governor Michael Barr and Fed Vice Chair for Supervision
Michelle Bowman on Wednesday.
Among individual stock movers, Nike ( NKE ) rose 2.7% after
CEO Elliott Hill bought additional stock in the company.
Broadcom ( AVGO ) advanced 3.2% after Meta extended its
custom chips deal with the firm.