US equity markets were pointing higher before the opening bell Friday, while oil prices fell as traders parsed reports that Washington and Iran have reached a tentative deal to extend their ceasefire and carry out further talks on Tehran's nuclear program.
The S&P 500, the Dow Jones Industrial Average, and the Nasdaq were up 0.1% each in premarket activity. The benchmarks extended their record advance at the close of the previous session.
The US and Iran have agreed to a memorandum of understanding to extend a ceasefire between the countries and begin talks on Tehran's nuclear program, Axios reported Thursday, citing sources. However, US President Donald Trump is yet to sign off on the deal, according to the report.
Iran's semi-official Tasnim news agency said in a post on social media platform X that the text of the possible MOU between the two countries has not yet been finalized, Bloomberg News reported Friday.
Iranian armed forces fired missiles at unidentified targets late Thursday, CNBC reported, citing state media outlet Fars. The reported strikes come after Tehran fired a ballistic missile toward Kuwait overnight, which was intercepted by Kuwaiti forces, US Central Command said on X.
West Texas Intermediate crude oil was down 1.4% at $87.67 a barrel before the open, while Brent decreased 1.3% to $92.45.
"While significant hurdles remain, the market is reacting to the prospect of a supply surge once hundreds of tankers loaded with crude oil and refined fuels are released from the Persian Gulf," Saxo Bank said in a report published Friday. "In the months ahead, however, demand to replenish depleted global inventories is likely to provide support, potentially lifting the price floor compared with pre-war levels."
On Thursday, government data showed that annual inflation hit the highest reading in almost three years in April, even as consumer spending moderated in the face of high gasoline prices in the US. The world's largest economy expanded at a slower rate in the first quarter than previously estimated as consumer spending growth decelerated, according to the Bureau of Economic Analysis' second estimate.
"The downward revisions to consumer spending in (the first quarter) and the slowdown in April point to a consumer coming under stress, but not one that is about to buckle," Oxford Economics said in a note.
US Treasury yields were down in premarket action, with the 10- and two-year rates retreating one basis point each to 4.45% and 4.02%, respectively.
Friday's economic calendar has the international trade in goods data, as well as the retail and wholesale inventories reports at 8:30 am ET, followed by the Chicago purchasing managers' index for May at 9:45 am. The weekly Baker Hughes oil-and-gas rig count is out at 1 pm.
Federal Reserve Vice Chair for Supervision Michelle Bowman is scheduled to speak at 9:10 am, while Philadelphia Fed President Anna Paulson speaks at 9:15 am. San Francisco Fed President Mary Daly's remarks are due at 12:40 pm.
Dell Technologies' (DELL) shares soared 38% pre-bell after the computer and laptop maker overnight reported record fiscal first-quarter results that surpassed Wall Street's estimates amid a surge in demand for artificial intelligence-optimized servers. Oracle (ORCL) advanced 3.7% in premarket activity following a 6.7% jump at Thursday's close.
Gold moved 0.6% higher to $4,561 per troy ounce, while bitcoin edged up 0.4% to $73,660.
