US Stock Market Set to Extend Record Run on Optimism Over US-Iran Peace Deal Developments
US Stock Market Eyes Positive Start Amid Middle East War Resolution Hopes
The US stock market's key indices are poised for another positive start on Friday, 29 May, following a record high close in the previous trading session. The improvement in investors' appetite can be attributed to the strong AI-led earnings growth and hopes of a resolution to the nearly three-month-long Middle East war between the US and Iran.
Investors are currently awaiting details of the peace deal between the US and Iran, which has led to a decline in crude oil prices this week. According to a Reuters report, Washington and Tehran had agreed to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, but President Donald Trump had yet to approve it. The development has sent oil prices lower, with Brent crude futures for July declining 1.77% to $92.05 a barrel, and WTI US oil futures down 1.74% at $87.35.
| Oil Price Comparison | Brent Crude (July) | Brent Crude (August) | WTI US Oil Futures |
|---|---|---|---|
| Current Price | $92.05 | $91.07 | $87.35 |
| Weekly Decline | 1.77% | 1.76% | 1.74% |
| Weekly Drop | 11% | 11% | 10% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The US Secretary of State Marco Rubio is set to meet Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar in Washington on Friday, amidst the ongoing US-Iran deal. Pakistan is currently acting as a mediator in the ongoing talks between the US and Iran. The meeting comes as US Vice President JD Vance said Washington is “very close” to securing a broader strategic agreement in West Asia. He stated that recent US actions are expected to help reopen the Strait of Hormuz, weaken Iran’s conventional military capabilities, and significantly delay Tehran’s nuclear programme.
The Dow e-mini futures were trading 0.21% higher as of 6.05 GMT, while the S&P 500 e-minis were higher by 0.13%, and the Nasdaq 100 e-mini futures added 0.17%. The S&P 500 and the Nasdaq posted record closing highs in the last trading session, despite inflationary concerns around the US-Iran war. Investors focused on the renewed optimism around AI and strong earnings growth, with the S&P 500 on track for a ninth consecutive weekly gain, its longest winning streak since December 2023.
| Index Performance | Dow e-mini | S&P 500 e-minis | Nasdaq 100 e-mini |
|---|---|---|---|
| Current Gain | 0.21% | 0.13% | 0.17% |
| Weekly Gain | N/A | 9th consecutive weekly gain | N/A |
Among specific stocks, Dell surged 37.8% before the bell, after raising its full-year profit and revenue forecasts. Peers Hewlett Packard Enterprise and Super Micro Computer gained 18% and 10.4%, respectively. Money markets expect the Federal Reserve to keep interest rates steady for the rest of the year, with some expectations of a 25 bps hike in December.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should remain optimistic about the US stock market's performance due to the potential resolution of the US-Iran conflict.
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