US Stock Futures Rally as U.S.-Iran Peace Talks Boost Market Sentiment Despite Ongoing Strikes

U.S. stock index futures climbed sharply on Thursday as reports of ongoing peace negotiations between the United States and Iran helped ease investor concerns over escalating Middle East tensions. The positive developments also supported a potential rebound in technology stocks following a difficult trading session on Wall Street.

As of early Thursday, S&P 500 futures gained 0.8%, while Nasdaq 100 futures surged 1.1%. Dow Jones futures also advanced 0.8%, signaling a stronger market open after major indexes suffered steep losses the previous day.

Investor sentiment improved after reports indicated that Washington and Tehran continued diplomatic discussions despite exchanging military strikes for a second consecutive day. According to multiple media reports, both countries are working toward a preliminary agreement that could include the release of frozen Iranian funds. However, uncertainty remains, as U.S. President Donald Trump warned of additional military action if Iran fails to accept a peace proposal.

The conflict intensified after the U.S. launched strikes against Iranian military targets, while Iran reportedly responded with attacks on U.S. interests and allies in the Gulf region. Despite the heightened rhetoric, analysts noted that the situation has not yet escalated into a broader regional conflict.

Meanwhile, technology stocks remained in focus after Oracle (NYSE: ORCL) declined in after-hours trading. The company projected capital expenditures of up to $95 billion for fiscal 2027, significantly above market expectations. Oracle also announced plans to raise $40 billion through debt and equity financing, overshadowing its stronger-than-expected earnings results.

Concerns over rising artificial intelligence spending were further amplified by reports that OpenAI may significantly reduce AI pricing amid increasing competition from rival firms. These developments have fueled questions about the long-term sustainability of the AI investment boom.

On Wednesday, the S&P 500 fell 1.6%, the Nasdaq Composite dropped nearly 2%, and the Dow Jones Industrial Average recorded its worst decline of 2026 so far. Investors are also monitoring inflation data closely, with producer price figures expected to provide additional clues on Federal Reserve interest rate policy.

In addition, market participants are watching the anticipated $1.75 trillion SpaceX listing scheduled for Friday, which could become the largest public offering in financial history.