Stock market futures posted gains Thursday morning as traders snapped up discounted technology shares and reacted optimistically to diplomatic developments in Middle East peace negotiations between the United States and Iran.
Semiconductor companies recovered from Wednesday’s sharp decline that pushed major stock indexes down over 1% and sent technology shares into correction territory with a 10% fall from recent peak levels.
In early trading before markets opened, shares of major chipmakers Nvidia, Intel and Micron Technology climbed between 1.2% and 4.7%.
Despite ongoing military exchanges between the United States and Iran on Thursday, three Iranian sources and a European official reported that both nations were discussing specifics of an agreement following a broader political accord, though several matters require further negotiation.
Market optimism about potential reopening of the Strait of Hormuz shipping lane contributed to declining oil prices. Early morning trading showed the Dow E-minis climbing 367 points or 0.73%, while S&P 500 E-minis gained 53.75 points or 0.74%. The Nasdaq 100 E-minis advanced 338.75 points or 1.19%.
The S&P 500 has declined roughly 4% from its record peak reached in early June as market participants wrestle with high technology sector valuations and concerns over stricter monetary policy, while Middle East tensions drive up energy costs and fuel inflation worries.
Friday’s highly anticipated public offering of Elon Musk’s SpaceX, expected to carry a $1.75 trillion valuation, may challenge this year’s rally that has repeatedly pushed stocks to new highs.
Market watchers will focus on the monthly producer price index and weekly unemployment claims data, both scheduled for release at 8:30 a.m. ET, seeking insights into Federal Reserve policy direction before next week’s central bank meeting.
Wednesday’s data revealed U.S. consumer price increases reached their fastest rate in three years during May, driven higher by surging energy costs related to Middle East conflicts.
In individual stock movements, Oracle shares dropped 7% following the company’s announcement of capital expenditure plans for fiscal 2027 exceeding analyst projections, highlighting substantial cash requirements for artificial intelligence infrastructure expansion.
Corporate travel platform Navan saw shares surge 17.6% after the company increased its annual revenue and operating income forecasts on Wednesday, pointing to robust business travel activity and expanding enterprise client numbers.
