US Futures Rise on Iran Peace Deal Optimism, Tech Stocks Rally

US equity futures are trading higher in pre-market action as investors digest overnight developments surrounding potential US-Iran peace negotiations and strong earnings momentum in technology stocks. The Nasdaq 100 (QQQ) closed at $695.77, up 2.08% in the previous session, while the S&P 500 (SPY) gained 1.39% to $733.83.

Overnight Market Developments

Asian markets surged on peace deal optimism, with Japan’s Nikkei blazing past 63,000 for the first time as earnings strength combined with geopolitical developments. Reports indicate Iran is reviewing a US peace proposal, with Trump suggesting a swift end to regional conflicts could be possible. The developments have sparked risk-on sentiment across global markets.

Gold extended gains for a third consecutive day on the peace deal optimism, while oil prices declined sharply. The Indian rupee rebounded strongly against the dollar as oil slide and NDF dollar selling provided support. Chinese authorities reportedly asked banks to pause new loans to US-sanctioned refiners, adding another layer to ongoing trade dynamics.

Sector Focus

Technology sector ETFs remain in focus after yesterday’s 2.66% surge, driven by AMD results that sparked an AI stock rally. The Technology Select Sector SPDR Fund (XLK) is positioned for continued strength. Energy sector ETFs face headwinds following a 4.12% decline as oil prices retreated on peace deal prospects.

Industrial sector ETFs gained 2.59% in the previous session and may benefit from reduced geopolitical tensions. The Utilities Select Sector SPDR Fund (XLU) declined 1.42% as investors rotated into growth sectors.

Earnings Calendar

Several companies report earnings today, including GLIBA with consensus estimates of $1.25 EPS on $276 million revenue, and BOBS expecting $0.06 EPS on $590 million revenue. TWNP, MKTW, and OFRM are also scheduled to report, though many carry negative EPS expectations reflecting challenging operating environments in certain sectors.

Economic Data

No major economic data releases are scheduled for today, keeping investor focus on corporate earnings and geopolitical developments. The absence of significant economic indicators may allow markets to continue processing the implications of potential Middle East peace negotiations and their impact on global risk sentiment.

This article is generated from market data for informational purposes only. It does not constitute investment advice.