US stock index futures were little changed on Friday after Wall Street closed at record highs in the previous session, with investors awaiting details on reports that Washington and Tehran had agreed to extend a ceasefire.
The deal still requires approval from President Donald Trump.
The S&P 500 was on course for a ninth straight weekly advance, its longest such run since December 2023, as optimism around artificial intelligence and corporate earnings helped offset concerns over inflation, geopolitics and a slower economy.
5 things to know before Wall Street opens
1. Futures pause after record highs
US equity futures were steady in early trading after a strong session on Thursday, when major indexes closed at fresh highs.
S&P 500 and Nasdaq 100 futures were both marginally higher, rising just under 0.1%, while Dow Jones Industrial Average futures gained 120 points, or 0.14%.
The rally has been supported by resilient earnings expectations and continued enthusiasm around AI-linked stocks, even as investors remain alert to signs that valuations have become stretched.
2. US-Iran ceasefire reports support sentiment
Risk appetite was helped by reports that the US and Iran had agreed to extend a ceasefire and lift restrictions on shipping through the Strait of Hormuz, a key route for global energy supplies.
The agreement has not yet been approved by Trump, leaving markets sensitive to further geopolitical updates before the weekend.
The analysts said that markets were heading into the weekend in a stronger position as geopolitical fears eased and inflation avoided a major upside surprise.
3. Dell jumps after raising forecasts
Dell shares surged 38.5% in the pre-market trading after the computer hardware company lifted its full-year earnings and revenue forecasts.
The move added to optimism around AI infrastructure demand, particularly for companies exposed to servers, storage and enterprise technology spending.
Other hardware-linked names also rose, with HPE gaining 17.2% and Super Micro Computer climbing 11%, according to the figures provided.
4. Gap slides while Okta gains
Gap shares fell 15% in premarket trading after the retailer cut its annual sales forecast for the second time this year, highlighting pressure on budget-conscious consumers.
The weak outlook pointed to continued caution in discretionary spending, even as broader equity markets remain close to record highs.
Okta moved in the opposite direction, rising 8.1% after the identity-management company reported first-quarter revenue that beat analyst expectations.
5. Inflation and Fed speakers remain in focus
Economic data on Thursday showed US inflation rose at its fastest pace in three years in April, while first-quarter GDP growth was revised down to an annualised 1.6%.
Money markets expect the Federal Reserve to keep interest rates steady for the rest of the year, though some pricing still points to the possibility of a 25-basis-point increase in December.
Investors will watch comments from Fed officials, including Anna Paulson, Neel Kashkari and Mary Daly, for fresh clues on policy.
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