Wall Street futures rise on tech buying, Middle East peace hopes

NEW YORK: US stock index futures rose on Thursday, as investors sought bargains in beaten-down technology stocks and took heart from signs of progress in peace talks between the US and Iran.

Chipmakers bounced back after Wednesday’s selloff sent major Wall Street indexes down more than 1% and technology stocks into correction territory, or a 10% drop from their record close.

Nvidia, Intel and Micron Technology were up between 1.2% and 4.7% in premarket trading.

The US and Iran traded air attacks on Thursday, but three Iranian sources and a European official said the two countries were exchanging messages on details of a memorandum after reaching a political understanding, even as some issues still had to be discussed in detail.

Expectations that talks to reopen the Strait of Hormuz were on track had helped push oil prices lower.

At 6.22am, Dow E-minis were up 367 points, or 0.73%, and S&P 500 E-minis were up 53.75 points, or 0.74%. Nasdaq 100 E-minis were up 338.75 points, or 1.19%.

The S&P 500 has dropped about 4% since hitting a record closing high in early June as investors grapple with stretched valuations in the technology sector and concerns about tighter monetary policy, as the Middle East conflict sends energy prices soaring and stokes inflation.

The highly anticipated Friday market debut of Elon Musk’s SpaceX, set to be valued at US$1.75 trillion, could also test the rally this year that has repeatedly lifted stocks to record levels.

Investors will also be watching the monthly US producer prices report and weekly jobless claims, due at 8.30am, for more clues on the Federal Reserve’s policy path ahead of next week’s meeting.

US consumer inflation increased at its fastest pace in three years in May, data showed on Wednesday, boosted by surging prices for energy products amid the Middle East conflict.

Among movers, Oracle ORCL.N shares plunged 7% after it projected capital spending plans for fiscal 2027 above Wall Street estimates, underscoring the heavy cash outlays required to expand its AI infrastructure.

Shares of Navan jumped 17.6% after the corporate travel booking agency raised its full-year forecasts for revenue and operating income on Wednesday, citing strong business travel demand and growth in its enterprise customer base.