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Tentative US-Iran Ceasefire Extension Agreement Nudges US Equity Futures Higher Pre-Bell

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US equity futures edged higher pre-bell Friday as traders monitored developments on the peace negotiations between US and Iran, with the two countries reportedly agreeing on a memorandum of understanding to extend the ceasefire by 60 days.

Dow Jones Industrial Average futures were 0.3% higher, S&P 500 futures were up 0.1%, and Nasdaq futures were flat.

The memorandum still has to be approved by President Donald Trump, and Iran has not yet given a response to the latest version. Vice President JD Vance said the talks are making progress but still ongoing, while Treasury Secretary Scott Bessent confirmed that the negotiation teams have been "going back and forth."

Iran reportedly fired missiles at unidentified targets on Thursday while the Pentagon said Iran had launched a ballistic missile towards Kuwait and deployed attack drones in the Strait of Hormuz.

Traders also digested the latest round of earnings, with Costco Wholesale (COST) posting higher fiscal Q3 earnings and revenue late Thursday.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.7% at $91.14 per barrel and US West Texas Intermediate crude 1.5% lower at $87.58 per barrel.

The US advance international trade in goods deficit narrowed to $82.40 billion in April from $85.27 billion in March, according to data released by the US Census Bureau.

The Chicago purchasing managers index for May, due at 9:45 am ET, is seen coming in at 50.3, up from its prior value of 49.2.

Federal Reserve Vice Chair Michelle Bowman, Philadelphia Fed President Anna Paulson, and San Francisco Fed President Mary Daly are slated to speak on Friday.

In other world markets, Japan's Nikkei closed 2.5% higher, Hong Kong's Hang Seng ended 0.7% higher, and China's Shanghai Composite finished 0.7% lower. Meanwhile, the UK's FTSE 100 was up 0.2%, and Germany's DAX index was flat in Europe's early afternoon session.

In equities, Dell Technologies (DELL) shares were up 33% after the company reported higher fiscal Q1 non-GAAP net income and revenue that surpassed analysts' consensus. IBM (IBM) stock was 4.4% higher after the company said in a filing that it plans to invest more than $10 billion over the next five years to support quantum computing development. CoreWeave (CRWV) shares rose 1.4% after the company said it launched new agentic artificial intelligence capabilities designed to connect AI model training and inference in a continuous feedback loop to improve performance over time.

On the losing side, Autodesk (ADSK) shares were down 6.6% after multiple analyst price target cuts, including those by RBC and BMO Capital. JD.com (JD) stock was 1.1% lower after the European Commission said it launched an in-depth investigation over the company's proposed acquisition of Ceconomy due to concerns that foreign subsidies may have distorted the deal process.

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US Equity Indexes Rise as Iran Peace Deal Reportedly Awaits Trump's Signature, Core Inflation Eases Unexpectedly

US equity indexes rose as a deal to end the war against Iran was said to be awaiting President Donald Trump's signature and as the Federal Reserve's preferred inflation gauge unexpectedly eased in April.The Nasdaq Composite climbed 0.9% to 26,917.47, the S&P 500 advanced 0.6% to 7,563.63, and the Dow Jones Industrial Average edged up by less than 0.1% to 50,668.97 at the close on Thursday.A tentative agreement has been reached between the US and Iran to open the Strait of Hormuz and start nuclear talks, according to US officials, CNN reported, adding that Trump has not signed off on it yet. Negotiators for the US and Iran agreed on a 60-day memorandum of understanding to extend the ceasefire, Axios reported, citing two US officials.Meanwhile, US Central Command confirmed that Iran fired a ballistic missile toward Kuwait overnight, which was intercepted, CNN reported. Iran's Islamic Revolutionary Guard Corps earlier said it launched an attack targeting an American air base, claiming it was the source of US strikes, according to the news report.Brent crude futures slipped 0.4% to $93.94. West Texas Intermediate crude oil futures rose 0.5% to $89.15.In precious metals, gold futures jumped 1% to $4,528.2, and silver futures climbed 1.3% to $75.90.The personal consumption expenditures, or PCE, price index slowed to 0.4% month-over-month from 0.7% in March, Bureau of Economic Analysis data showed. The Street expected 0.5% in a Bloomberg-compiled poll. The core PCE price index, which excludes the more volatile food and energy and is the Fed's preferred inflation gauge, grew by 0.2% versus March's 0.3%, also the consensus for April.Annually, the PCE index jumped 3.8% in April, the largest increase since May 2023, up from 3.5% in March but in line with market expectations. Core PCE climbed to 3.3%, as expected, from 3.2% in March.Most US Treasury yields fell, with the 10-year down 2.8 basis points to 4.45%. The two-year declined one basis point to 4.02%.US economic growth, as measured by gross domestic product, rose by 1.6% in Q1, revised lower from a 2.0% increase in the advance estimate. No revision was expected in a survey compiled by Bloomberg. GDP rose by 0.5% in Q4.New orders for US durable goods rose by 7.9% in April following a 1.3% increase in March, beating the 4.0% gain forecast in a survey compiled by Bloomberg. Excluding a 21.5% surge in transportation orders, new orders would have been up 1.1% in April after a 1.1% increase in March. Expectations were for a 0.5% gain.In company news, Dollar Tree (DLTR) shares soared 18%, the biggest gainer on the S&P 500, after the company posted higher fiscal Q1 adjusted earnings and revenue, and raised its fiscal 2026 adjusted EPS guidance.The worst performer on the S&P 500 and the Nasdaq was Synopsys (SNPS), down 8.6%, after the company reported a decline in fiscal Q2 non-GAAP earnings.

$^DJI$^IXIC$^SPX$DLTR$SNPS
Asia Markets

Exchange-Traded Funds Rise as US Equities Advance After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV edged higher. Actively traded Invesco QQQ Trust (QQQ) rose 0.9%.US equity indexes rose after midday Thursday amid media speculation of a peace deal with Iran to end the war and as the Federal Reserve's preferred inflation rate eased sequentially.EnergyIShares US Energy ETF (IYE) rose 0.3%, and the State Street Energy Select Sector SPDR (XLE) added 0.1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) was 1.7% higher; iShares US Technology ETF (IYW) rose 1.5%, and iShares Expanded Tech Sector ETF (IGM) was up 1.6%.The State Street SPDR S&P Semiconductor (XSD) advanced 2.1%, and iShares Semiconductor (SOXX) gained 2%.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) declined 1.4%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), climbed 1.3%.CommoditiesCrude oil fell 0.5%, and the United States Oil Fund (USO) slipped 0.7%. Natural gas climbed 5.5%, and the United States Natural Gas Fund (UNG) was up 5.9%.Gold on Comex added 2%, and the State Street SPDR Gold Shares (GLD) rose 1.3%. Silver added 1.3%, and iShares Silver Trust (SLV) was up 1.4%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) lost 0.1%. The Vanguard Consumer Staples ETF (VDC) fell 0.2%, and iShares Dow Jones US Consumer Goods (IYK) was down 0.5%.The State Street Consumer Discretionary Select Sector SPDR (XLY) rose fractionally. VanEck Retail ETF (RTH) slipped 0.1%, and the State Street SPDR S&P Retail (XRT) climbed 2%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 1.2%, iShares US Healthcare (IYH) added 1.3%, and Vanguard Health Care ETF (VHT) was up 1.3%. IShares Biotechnology ETF (IBB) gained 1%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) rose 0.1%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were marginally higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 1.8%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) dipped 1.9%, ProShares Ether ETF (EETH) lost 2.1%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 2.2% lower.

$^DJI$^EEM$^EXI$^FAS$^FAZ$^GLD$^IBB$^IGM$^IGV$^IPK$^IVV$^IWM$^IXIC$^IYE$^IYH$^IYJ$^IYK$^IYW$^PMR$^QQQ$^RTH$^SOXX$^SPX$^SPY$^UNG$^USO$^VDC$^VHT$^VIS$^XLE$^XLF$^XLI$^XLK$^XLP$^XLV$^XRT$^XSD$BETH$BITO$EETH
Asia Markets

US Equity Indexes Rise Amid Rumors of Iran Peace Deal, Surprise Easing in Fed's Preferred Inflation Measure

US equity indexes rose amid speculation of an agreement over a path to end the war against Iran and as the Federal Reserve's preferred inflation rate unexpectedly eased in April.The Nasdaq Composite climbed 0.8% to 26,880.1, the S&P 500 advanced 0.6% to 7,562.2, and the Dow Jones Industrial Average edged up by less than 0.1% to 50,678.5 after midday on Thursday.Healthcare and technology led the gainers intraday. Financials, utilities, and consumer staples were among the decliners.Negotiators for the US and Iran reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and begin talks on Iran's nuclear program, but President Donald Trump has not yet given final approval, Axios reported Thursday, citing two US officials. The White House didn't immediately reply to a request for comment.Brent crude futures fell 0.6% to $93.70. West Texas Intermediate crude oil futures rose 0.2% to $88.86, off session highs of more than 1% gain.In precious metals, gold futures jumped 1.1% to $4,532.3, and silver futures climbed 1.4% to $75.91.Most US Treasury yields fell, with the 10-year down 2.8 basis points to 4.46%. The two-year declined 1.5 basis points to 4.02%.On a month-on-month basis, the personal consumption expenditures, or PCE, price index slowed to 0.4% from 0.7% in March, Bureau of Economic Analysis data showed Thursday. The Street expected 0.5% in a Bloomberg-compiled poll. The core PCE price index, which excludes the more volatile food and energy and is the Fed's preferred inflation gauge, grew by 0.2% versus March's 0.3%, also the consensus for April.Annually, the PCE index jumped 3.8% in April, the largest increase since May 2023, up from 3.5% in March but in line with market expectations. Core PCE climbed to 3.3%, as expected, from the 3.2% in March.US economic growth, as measured by gross domestic product, rose by 1.6% in Q1, revised lower from a 2.0% increase in the advance estimate. No revision was expected in a survey compiled by Bloomberg. GDP rose by 0.5% in Q4.New orders for US durable goods rose by 7.9% in April following a 1.3% increase in March, beating the 4.0% gain forecast in a survey compiled by Bloomberg. Excluding a 21.5% surge in transportation orders, new orders would have been up 1.1% in April after a 1.1% increase in March. Expectations were for a 0.5% gain.In company news, Dollar Tree (DLTR) shares soared 18%, the second-biggest gainer on the S&P 500, after the company posted higher fiscal Q1 adjusted earnings and revenue, and raised its fiscal 2026 adjusted EPS guidance.The worst performer on the S&P 500 and the Nasdaq was Synopsys (SNPS), down 8.4%, after the company reported a decline in fiscal Q2 non-GAAP earnings.Best Buy (BBY) shares catapulted 18%, the top performer on the S&P 500, after the firm reported higher-than-expected fiscal Q1 adjusted earnings and revenue.

$^DJI$^IXIC$^SPX$BBY$DLTR$SNPS