US Pre-Market: US and Iran May Be Close to a Deal, Oil Prices Drop Below $100, US Stocks and Precious Metals Rise, Japan and South Korea Stocks Hit New Highs

Shares of chip designer Arm fell over 6% in pre-market trading. The company reported fourth-quarter results after the bell the previous day, with revenue jumping 20% year-over-year to significantly beat market expectations. While shares initially surged 12% in after-hours trading, they subsequently declined as investors questioned whether Arm's chip supply could keep pace with further growth in demand.

Appliance giant Whirlpool plummeted over 17% in pre-market trading after the company slashed its full-year earnings-per-share guidance by nearly half on Wednesday and announced a dividend suspension to focus on debt repayment. The industry has fallen into a recessionary slump, dragged down by the conflict in Iran.

Oracle rose over 2% in pre-market trading and has gained 19.47% over the past five days, primarily buoyed by a broad rally in U.S. equities this week and a breakout in the semiconductor sector.

Japanese and South Korean stock markets both hit record highs. The Nikkei 225 Index surged 5.58%, breaking through the 62,000-point psychological level for the first time to reach a record closing high, with its single-day gain also marking the highest record since April 2025. This rally can be viewed as a catch-up move following the recent closure of the Japanese market, as U.S. stocks had previously rallied collectively, reflecting improved market sentiment driven by expectations of an easing in U.S.-Iran tensions. The KOSPI Index briefly broke the 7,500-point mark intraday, rising nearly 2% to hit an intraday high of 7,531.88; it eventually closed up 1.43% at 7,490.04, a record closing high.

The U.S.-Iran conflict has eased significantly with an agreement in sight, and a consensus has been reached on the gradual reopening of the strait. According to Iranian media reports on the 7th, the Islamic Revolutionary Guard Corps Navy has designated two shipping lanes for vessel passage, though ships still may not cross the Strait of Hormuz without Iranian permission. Both sides are nearing a Memorandum of Understanding aimed at ending the war and setting a framework for more detailed nuclear negotiations. Trump expressed optimism regarding the prospects of a U.S. deal with Iran, believing it is possible for both sides to reach an agreement next week to end the hostilities, stating that a potential deal includes Iran shipping its highly enriched uranium to the United States.

ADP data released Wednesday showed the largest increase in 15 months, with U.S. private sector job additions reaching 109,000 in April, which may suggest that the frozen labor market is gradually recovering; markets are now betting that interest rate cuts will be postponed until 2027.

U.S. nonfarm payrolls for April will be released this Friday (May 8). On the same day, several Federal Reserve officials will deliver remarks at a conference at Stanford University.

Japanese companies Toyota and Sony will release their earnings results on May 8.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.