US equity futures were muted on Thursday, holding the sharp gains from the previous two sessions amid strong corporate earnings while markets awaited for clarity on energy supply from the Middle East. Contracts for the S&P 500 and the Nasdaq 100 were flat near their records, and the Dow was steady at 100 points away from its record in February. Iran continued to assess the memorandum sent by the US to end their war and restore tanker flows through the Strait of Hormuz. The possibility of a restart in energy flows from the area drove prices for major energy commodities to tumble in the week, aiding the bond market and pushing back against expectations of rate hikes by the Fed. McDonald's was 3% higher premarket after posting strong earnings, aligned with the optimistic guidance by DoorDash. Also, Fortinet gained 15% after its report. Meanwhile, chip stocks were muted following their surge yesterday, with AMD flat after its guidance-fueled 19% surge last session.

Unit labor costs in the US nonfarm business sector increased by 2.3% in Q1 2026, less than market expectations of 2.6% and after an upwardly revised 4.6% rise in Q4, preliminary estimates showed. It reflects a 31% increase in hourly compensation and a 0.8% increase in productivity. In the manufacturing sector, unit labor costs rose 2.4%, reflecting a 6.1% increase in hourly compensation and a 3.6% increase in productivity. On an annual basis, nonfarm unit labor costs rose 1.2%, while manufacturing unit labor costs advanced 3.7%.

WTI crude futures fell toward $91.5 per barrel on Thursday, extending a sharp decline from the previous session as investors weighed the prospects for a Middle East peace deal. Reports suggested that the US sent a one-page memorandum of understanding through Pakistani intermediaries aimed at formally ending the conflict and paving the way for the gradual reopening of the Strait of Hormuz. Tehran is expected to respond within days after confirming it was reviewing the US proposal, although broader negotiations surrounding Iran’s nuclear program are reportedly set to take place later. However, President Trump cautioned that a deal has not yet been finalized and it would be a "big assumption" that Iran would accept the proposal, while threatening to resume military strikes if it fails to comply. Meanwhile, latest data showed US oil exports climbed to a record high last week as countries increasingly turned to American supply amid shortages linked to the conflict.

Mexico's annual inflation rate eased to 4.45% in April 2026 from 4.59% in March, which was the steepest since August 2024. Figures came marginally below analysts' forecasts of 4.50%. Prices slowed down in several CPI categories, including food & non-alcoholic beverages (6.36% vs 6.91% in March); alcoholic beverages & tobacco (7.97% vs 8.05%); housing & utilities (3.08% vs 3.13%); health (5.25% vs 5.43%); restaurants & hotels (6.89% vs 7.16%) and miscellaneous goods & services (4.81% vs 5.52%). On the other hand, transportation prices rose faster (3.14% vs 2.62%), amid higher fuel costs linked to the Middle East conflict. The core inflation rate, which strips out some volatile food and energy prices, fell to 4.26% in April from 4.45% in March, the lowest in 8 months and slightly below forecasts of 4.27%. On a monthly basis, the CPI went up by 0.2%, down from a 0.86% rise in March and compared to the market consensus of a 0.25% increase.

US-based employers announced 83,387 job cuts in April 2026, the most in three months, compared to 60,620 in March, but down 21% from the same month last year. April’s total is the third highest for an April month since 2009, with tech (33,361) announcing the most jobs, followed by warehousing (5,743) and services (4,110). Artificial Intelligence led all reasons for job cuts for the second month in a row, with 26% of total cuts. So far this year, employers have announced 300,749 job cuts, down 50% from the same period last year. Tech was the leading contributor (85,411) and AI has been cited for 49,135 cuts this year, and it is the third-leading cause of layoff plans. “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” said Andy Challenger from Challenger, Gray & Christmas.

Eurozone retail sales volumes declined by 0.1% month-over-month in March 2026, marking the third consecutive monthly drop but outperforming market expectations of a 0.3% fall. Fuel sales led the decline, plunging 1.6%, the steepest decrease since August 2023, due to rising fuel costs tied to the Middle East war. Food trade also fell by 0.3%, following a 0.5% drop in the previous month. In contrast, non-food product sales rose by 0.6%, the first increase since November. Among the bloc’s largest economies, sales fell in Germany (-2.1%) and Italy (-0.1%), but increased in Spain (1.2%), the Netherlands (1.1%) and France (0.2%). Annually, retail trade growth slowed to 1.2% in March from 1.3%, slightly above forecasts of 1%.