US Stock Market Rises 1.5% as Hopes for US-Iran Peace Talks Intensify, Oil Prices Decline

US Stock Market Set for Positive Start Amid Hopes of Middle East Crisis Resolution

The US stock market's flagship indices are expected to open for a positive start today, with the tech-heavy Nasdaq anticipated to surge over 1%. The optimism is driven by fresh hopes of a resolution to the Middle East crisis, set to enter its third month soon, moderation in crude oil prices, and stock-specific triggers.

At the time of writing, futures for all three indices — S&P 500, Dow Jones, and Nasdaq 100 — were trading higher by 0.43%, 0.14%, and 1.35%, respectively. Both S&P and Nasdaq were near 52-week high levels. The sentiment received a fresh fillip following a Reuters report, citing a Pakistani government source, stating that Iranian Foreign Minister Abbas Araqchi was expected to arrive in Islamabad on Friday night to resume peace talks with the US.

The hopes of a resolution have also led to a reversal in the trend for oil prices. Despite a decline, oil prices were at elevated levels, with Brent crude futures holding above $104 and WTI crude around the $93.8 mark. Brent crude futures turned negative by 0.9%, while WTI crude recorded a steeper 2% decline.

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Stock-Specific Action Expected Amid Ongoing Earnings Season

Stock-specific action is also expected amid the ongoing earnings season, with semiconductor names likely to hog the limelight. Shares of Intel jumped nearly 29% in pre-market trading after delivering a blockbuster sales forecast. Vested Finance observed that the outlook signals that the chipmaker is finally capitalising on the massive buildout of artificial intelligence infrastructure, reigniting investor interest in a stock that had long lagged its peers.

The optimism is spilling over globally, with Taiwan Semiconductor Manufacturing Company shares also up sharply as regulators eased investment limits, while in Europe, SAP is gaining after strong earnings helped ease concerns that AI could disrupt traditional software models. Vested Finance observed that the US stock market is being influenced by AI-driven earnings on one hand and macro risks from energy markets on the other hand, painting a mixed picture for Wall Street.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Note: The previous close and futures change for the S&P 500, Dow Jones, and Nasdaq 100 are not provided in the original text, so they are left blank in the table.