US stock futures rose in early trading on Thursday, extending a rally fueled by hopes of a cooling in Middle East tensions and a stronger start to earnings season. The move came as investors kept leaning into risk assets after the S&P 500 and Nasdaq 100 closed at record highs in the previous session.
NASDAQ 100 – 1 Year Chart
Market snapshot
At the latest available session, S&P 500 futures were up 0.35%, while Nasdaq 100 futures rose 0.32% and Dow futures gained 0.12%. The earlier Reuters-reported close showed the S&P 500 ending up 0.8% and the Nasdaq 100 rising 1.4%, both at record highs, with the Dow slipping 0.15%.
Treasury prices were softer as investors rotated out of safe havens. The 10-year yield rose 2.8 basis points to 4.276% in the latest cited session, while June 10-year notes fell 5.5 ticks.
What moved markets
The main driver was optimism that the US and Iran could extend their ceasefire and keep diplomacy alive, thereby reducing the immediate risk of conflict. Reuters said the market was pricing out some of the geopolitical premium that had built up, while stock buyers rotated back into growth and technology names.
Oil also remained in focus because any easing of conflict risk could reduce fears of supply disruption in the Strait of Hormuz. Reuters reported that crude had rallied sharply in the earlier session amid renewed tensions, adding pressure on inflation expectations and energy-sensitive stocks.
Cross-asset reaction
The dollar firmed alongside higher yields as traders trimmed defensive positioning. Gold and Treasuries both lost some of their safe-haven appeal, while equities found support from the combination of lower geopolitical stress and solid earnings signals.
Policy and macro
The market reaction implies a softer near-term inflation scare than would have followed a renewed escalation, but energy remains the key wildcard. If crude stays contained, the pressure on central banks to stay more restrictive would ease, while a fresh spike could quickly revive bond volatility.
For equities, the message is that macro worries are being temporarily outweighed by geopolitical relief and earnings momentum. That supports the recent record run in large-cap US stocks, though the bond market remains sensitive to shifts in the oil outlook.
