US futures rise on Iran peace hopes and AI momentum as oil retreats
Dow, S&P 500 and Nasdaq futures climb as investors weigh diplomatic progress against geopolitical risks, with key tech earnings on the horizon.
US stock futures advanced early on Wednesday, extending a rally that saw the S&P 500 and Nasdaq Composite hit record highs on Tuesday. The Dow Jones Industrial Average futures rose 0.4%, the S&P 500 futures gained 0.3%, and Nasdaq 100 futures climbed 0.6%. Market optimism was underpinned by potential progress in US-Iran peace negotiations and sustained confidence in the artificial intelligence sector.
Crude oil prices declined despite the volatile geopolitical backdrop. Brent crude fell to $94 per barrel after rising nearly 4% on Tuesday, while West Texas Intermediate traded at $90 per barrel. The drop in energy costs occurred even as the Strait of Hormuz remained largely closed to commercial traffic, a vital chokepoint through which a fifth of the world’s oil and liquefied natural gas flows during peacetime.
Secretary of State Marco Rubio cautioned that formalising a peace agreement with Iran would likely take several days. Sticking points in the negotiations include Tehran’s $24 billion in frozen assets and its reluctance to allow free passage through the strait. Tensions remain high, with US forces striking targets near the strait and the Islamic Revolutionary Guard Corps reporting attacks on US aircraft that entered Iranian airspace.
Despite the closure, commercial movement saw a slight uptick on Tuesday. At least two non-Iranian supertankers exited the chokepoint, marking the first movement of 4 million barrels of unsanctioned crude in a week. This limited activity suggests that while the blockade persists, some commercial traffic continues to navigate the region under current constraints.
Investors are also focusing on the conclusion of earnings season. Key reports due on Wednesday include results from Marvell Technology, Salesforce, Snowflake, and Abercrombie & Fitch. In Washington, President Donald Trump is convening his Cabinet at the White House on Wednesday, having moved the meeting from Camp David due to weather conditions.
