U.S. Futures Modestly Lower as Markets Pause After Rally

After one of the strongest rallies of the year, futures are modestly lower. Markets are pausing and giving back part of yesterday's surge after the initial euphoria around the ceasefire. The two-week ceasefire between the U.S. and Iran remains intact on paper, but cracks are already emerging. Ongoing military activity in Lebanon, disputes over compliance and continued restrictions in the Strait of Hormuz are all raising doubts.Crude is rebounding back toward the $100 level following yesterday's collapse as traders price in the risk that supply disruptions persist. Energy stocks are stabilizing and bond yields are ticking higher again as rate-cut expectations get pushed out. Markets are now pricing a much lower probability of easing this year, with some Fed officials even signaling openness to hikes if inflation proves sticky.In pre-market trading, S&P 500 futures fell 0.24%, Nasdaq futures fell 0.13% and Dow futures fell 0.31%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -CoreWeaveup 2% after announcing an expanded, long-term agreement with Meta Platformsto provide AI cloud capacity through December 2032 for approximately $21BTexas Instrumentsup 1% after Stifel upgraded the stock to Buy with a price target of $250, up from $215UP AFTER EARNINGS -Staar Surgicalup 19%Richardson Electronicsup 15%Resources Connectionup 9%BlackBerryup 8%DOWN AFTER EARNINGS -Simply Good Foodsdown 22%Applied Digitaldown 2%LOWER -Zscalerdown 3% after BTIG downgraded the stock to Neutral with no price target and removed the stock from the firm's first half Top Picks listTradeweb Marketsdown 1% after TD Cowen downgraded shares to Hold with a price target of $129, down from $130Conagra Brandsdown 1% after BNP Paribas downgraded shares to Neutral with a price target of $16, down from $19