Dow Jones futures rose 0.18% to near 49,790 in early European trading on Friday. S&P 500 futures gained 0.30% to about 7,390, while Nasdaq 100 futures added 0.48% to above 28,820.
US stock futures moved higher after renewed Middle East tensions eased. CENTCOM said US forces intercepted Iranian attacks on Thursday and carried out self-defence strikes while US Navy guided-missile destroyers transited the Strait of Hormuz towards the Gulf of Oman.
Ceasefire Signals And Market Direction
CENTCOM said it does not seek further escalation and remains prepared to defend US personnel and assets. President Donald Trump said the US–Iran ceasefire remains in effect, and a senior US official told Fox News the attacks did not indicate the ceasefire had collapsed.
In regular US trading on Thursday, the Dow Jones fell 0.63%, the S&P 500 dropped 0.38%, and the Nasdaq 100 slipped 0.13%. McDonald’s reported first-quarter revenue of $6.52 billion and EPS of $2.83.
Datadog jumped 30.61% after first-quarter results more than doubled profits and it raised its full-year outlook. MercadoLibre reported first-quarter 2026 revenue up 49% year on year to $8.85 billion, but adjusted EPS of $8.23 missed forecasts and the stock fell 7%.
Markets are awaiting results from Ubiquiti Networks, Wendy’s, and Brookfield Asset Management. The April US jobs report is forecast to show Nonfarm Payrolls up 62K versus 178K in March, with unemployment steady at 4.3%.
Options Volatility And Tactical Setups
With tensions in the Strait of Hormuz easing for now, we are seeing market fear pull back. The CBOE Volatility Index (VIX), which often spikes during geopolitical uncertainty, has likely fallen back below 17, after trading closer to 20 during the recent flare-up. This environment makes it more attractive to sell option premium on broad market indices like the S&P 500.
Our primary focus should be the upcoming April employment report, where expectations are for a very weak 62,000 new jobs. This sets a low bar for a positive surprise, as we saw with the March retail sales figures that came in at 0.8% growth versus a 0.4% forecast, boosting the market. A number above 100,000 could easily be a catalyst for a rally, making short-term call options on the Nasdaq 100 an interesting tactical play.
The huge individual stock moves, like Datadog surging over 30% and MercadoLibre falling 7%, highlight a market driven by earnings. The elevated implied volatility in these names presents clear opportunities for derivative traders. For Datadog, we could look at selling call spreads to capitalize on the idea that the massive rally may be overdone, while the drop in MercadoLibre might present a chance to sell puts at lower strike prices.
This situation feels similar to the market conditions in the third quarter of 2025 when slowing growth concerns were also at the forefront. During that period, the market whipsawed on economic data releases until the Federal Reserve clarified its position on interest rates. It is therefore wise to use defined-risk strategies, like spreads, to protect against a sudden reversal if the jobs data is far worse than even the low expectations.
