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Update: US Equity Futures Rise Pre-Bell on Middle East Peace Deal Optimism

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(Updates with recent oil price movement, world markets' overview and stock movements.)

US equity futures were higher pre-bell Friday as traders anticipated the potential signing of a peace deal between the US and Iran that will reopen the Strait of Hormuz.

Dow Jones Industrial Average futures were 0.4% higher, S&P 500 futures were up 0.2%, and Nasdaq futures were marginally up.

The draft memorandum of understanding includes a commitment from the US to lift oil sanctions and a pledge from Iran to reopen the Strait of Hormuz, according to a CNBC report citing Iranian state media. The two nations could sign the agreement as soon as Sunday in Switzerland, Bloomberg reported, citing senior officials.

President Donald Trump said in a post on Truth Social Thursday that he had cancelled planned strikes on Iran, as talks with Iranian leadership had resulted in final points being "approved by all parties involved."

Traders took note of the latest round of earnings, with Adobe (ADBE) posting higher fiscal Q2 adjusted earnings and revenue. They are also anticipating the debut of SpaceX on Nasdaq, set to go public under the ticker symbol SPCX.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 2.5% at $88.10 per barrel and US West Texas Intermediate crude 2.8% lower at $85.22 per barrel.

The University of Michigan consumer sentiment index for June, slated for 10 am ET, is expected at 46.0, up from 44.8 previously.

In other world markets, Japan's Nikkei closed 2.8% higher, Hong Kong's Hang Seng ended 1.9% higher, and China's Shanghai Composite finished 1.1% higher. Meanwhile, the UK's FTSE 100 was up 0.9%, and Germany's DAX index was 1.2% higher in Europe's early afternoon session.

In equities, Adobe shares dropped 9.1% after the company reported its fiscal Q2 financial results and Chief Financial Officer Dan Durn announced his exit from the firm effective Monday. Venture Global (VG) stock was down 1.5% after the company said it closed an offering of $1.13 billion of 6.375% senior secured notes due Dec. 15, 2034, and $1.13 billion of 6.625% senior secured notes due June 15, 2036.

On the winning side, IBM (IBM) and ServiceNow (NOW) shares were up 0.5% and 0.2%, respectively, after the companies said they have expanded their collaboration to help enterprises modernize legacy data and accelerate the use of artificial intelligence across core business operations. Nokia (NOK) stock was up 0.8% after the company upgraded its Network Services Platform with an agentic artificial intelligence framework to enable trusted AI operations across multi-vendor IP networks and advance autonomous network capabilities.

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Update: US Equity Indexes Jump, Crude Oil Sinks as Trump Hopeful of Signing Iran Peace Deal This Weekend

(Updates with index and price moves as well as other information influencing markets from the first paragraph.)US equity indexes surged while crude oil slumped with government bond yields on Thursday after President Donald Trump canceled planned attacks on Iran and said a peace deal could be signed with Tehran this weekend.The Dow Jones Industrial Average rose 1.9% to 50,848.75, the Nasdaq Composite jumped 2.5% to 25,809.66, and the S&P 500 advanced 1.8% to 7,394.30 at the close. All sectors except energy, consumer staples, and real estate advanced. Industrials, materials, technology, and consumer discretionary led the gainers.In a social media post, Trump said he is canceling the attacks planned for Iran on Thursday."Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening," Trump said in the post.A deal could be signed as soon as this weekend, possibly in Europe, Al Jazeera reported, citing Trump. The Strait of Hormuz will reopen as soon as the pact is signed, the news reported cited the US president as saying.However, Iranian officials haven't confirmed progress on the deal, and the Islamic Revolutionary Guards cast doubt on an earlier statement about the potential agreement, CNN reported. Iran has yet to comment on Trump's latest remarks or the claim that a deal has been agreed, Al Jazeera reported.Nevertheless, the front-month global benchmark North Sea Brent crude futures sank 4.6% to $88.86 per barrel, and the US West Texas Intermediate crude futures slumped 4.2% to $86.27 per barrel.US Treasury yields declined, with the 10-year down 8.3 basis points to 4.45% and the two-year lower by 7.1 basis points to 4.06%.In precious metals, gold futures jumped 2.4% to $4,232.1, and silver futures surged 4.1% to $67.40.In economic news, the core Producer Price Index, which excludes the more volatile food and energy prices, grew 0.4% in May, slower than the 0.5% gain expected in a Bloomberg-compiled poll and a 0.7% rise in April. Core PPI remained at 4.9% year-over-year but below the 5.4% consensus.Headline producer prices rose by 1.1% in May, the same as in April but above the forecast for a 0.7% gain. PPI jumped 6.5% year-over-year, the strongest pace since November 2022, from 5.7% in the previous month. Energy prices surged almost 11% in May following a 7.5% jump in April, according to a Stifel note."This is a Fed that has been willing to tolerate above-target inflation for years, so any notion of a temporary, or bringing back a favorite word, 'transitory' impact from higher energy prices will not be enough to force the Fed's hand," Stifel Chief Economist Lindsey Piegza said in the note.Initial jobless claims rose to 229,000 during the week ended June 6 from 225,000 in the prior week and above the 220,000 expected."It is more likely than not that this [claims data] is just seasonal noise," Jefferies Chief US Economist Thomas Simons said in a note.In company news, Space Exploration Technologies (SPCX) is pricing its initial public offering of about 555.6 million Class A shares at $135 each, the company said Thursday. Shares are expected to begin trading on the Nasdaq Global Select Market and Nasdaq Texas on Friday under the symbol "SPCX".

$^DJI$^IXIC$^SPX$SPCX
Asia Markets

Update: US Equity Indexes Advance Following Slower-Than-Expected Growth in Core Producer Price Inflation

(Updates with new information from the first paragraph.)US equity indexes rose as bets for an interest-rate increase this year were little changed after core producer price inflation grew less than forecast, helping offset the impact of President Donald Trump's threats of more attacks on Iran.The Dow Jones Industrial Average rose 0.6% to 50,237.1, followed by a 0.5% gain in the Nasdaq Composite to 25,292.3 and a 0.3% increase in the S&P 500 to 7,287.5 in midday trading on Thursday.All sectors except communication services, financials, and real estate advanced. Industrials and materials led the gainers.The core Producer Price Index, which excludes the more volatile food and energy prices, grew 0.4% in May, slower than the 0.5% gain expected in a Bloomberg-compiled poll and a 0.7% rise in April. Core PPI remained at 4.9% year-over-year but below the 5.4% consensus.Headline producer prices rose by 1.1% in May, the same as in April but above the forecast for a 0.7% gain. PPI jumped 6.5% year-over-year, the strongest pace since November 2022, from 5.7% in the previous month."This is a Fed that has been willing to tolerate above-target inflation for years, so any notion of a temporary, or bringing back a favorite word, 'transitory' impact from higher energy prices will not be enough to force the Fed's hand," Stifel Chief Economist Lindsey Piegza said in a note. "While several members have voiced a willingness to consider a higher policy target, the majority still remain optimistic [that] elevated prices will prove somewhat temporary with inflation potentially cooling later this year."The probability of a 25-basis-point increase in interest rates to a target range of 3.75% to 4% in December remained at 43% from a day ago, according to the CME FedWatch tool. The comparisons for September were 36% versus 34%, and, for October, the data showed an increase to 41% from 39%, implying modest rate-hike probabilities following the producer price inflation data.Initial jobless claims rose to 229,000 during the week ended June 6 from 225,000 in the prior week and above the 220,000 expected."It is more likely than not that this [claims data] is just seasonal noise," Jefferies Chief US Economist Thomas Simons said in a note. "Nonetheless, this data continues to be an important area to watch."Meanwhile, crude oil futures rose, with front-month global benchmark North Sea Brent up 0.8% to $93.87 per barrel and US West Texas Intermediate higher by 1.5% to $91.35 per barrel.The US will hit Iran with an attack "VERY HARD TONIGHT," and it will take control of the Kharg Island sometime in the "not too distant future," President Donald Trump said Thursday on a Truth Social post. The island is reportedly the gateway for a vast majority of Iran's crude oil exports. Iran's Foreign Ministry has condemned the recent US strikes on the country, saying that it has rendered the ceasefire "practically meaningless," the Associated Press reported Thursday.US Treasury yields traded mixed, with the 10-year down one basis point to 4.53% while the two-year rose 1.6 basis points to 4.14%.In company news, BlackRock placed a $5 billion order to buy shares of SpaceX (SPCX), The Wall Street Journal reported. The company is expected to go public on Friday.Oracle (ORCL) shares sank 12%, the worst performer on the S&P 500, after the company said it plans to raise about $40 billion via debt and equity issuances in fiscal 2027, including its previously announced $20 billion stock sale. Wedbush cut its price target for Oracle's shares to $240 from $275, citing the debt raise.Applied Materials (AMAT) shares jumped 6.7%, among the top gainers on the Nasdaq, after the firm expanded manufacturing and research & development operations in Singapore with a $500 million facility in Tampines to support AI-driven semiconductor demand.

$^DJI$^IXIC$^SPX$AMAT$ORCL$SPCX
Asia Markets

Exchange-Traded Funds Rise as US Equities Advance After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were higher. Actively traded Invesco QQQ Trust (QQQ) added 0.9%.US equity indexes rose amid a broad-based rally after core producer price inflation, which excludes the more volatile food and energy prices, grew less than forecast in May.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each fell 0.1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) climbed up 0.7%; iShares US Technology ETF (IYW) rose 0.5%, and iShares Expanded Tech Sector ETF (IGM) was up 0.4%.The State Street SPDR S&P Semiconductor (XSD) advanced 2.2%, and iShares Semiconductor (SOXX) was 3% higher.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.8%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), rose 0.9%.CommoditiesCrude oil gained 1.1%, and the United States Oil Fund (USO) added 0.5%. Natural gas shed 2.7%, and the United States Natural Gas Fund (UNG) was down 2.7%.Gold on Comex slipped 0.8%, and the State Street SPDR Gold Shares (GLD) fell 0.2%. Silver declined 1.2%, and iShares Silver Trust (SLV) was up fractionally.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) fell less than 0.1%. The Vanguard Consumer Staples ETF (VDC) fell 0.1%, and iShares Dow Jones US Consumer Goods (IYK) was down marginally.The State Street Consumer Discretionary Select Sector SPDR (XLY) gained 0.1%. VanEck Retail ETF (RTH) was 0.6% higher, and the State Street SPDR S&P Retail (XRT) added 0.9%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 0.4%, iShares US Healthcare (IYH) added 0.4%, and Vanguard Health Care ETF (VHT) was up 0.5%. IShares Biotechnology ETF (IBB) climbed up 1.9%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 1.4%. Vanguard Industrials Index Fund (VIS) gained 1.3%, while iShares US Industrials (IYJ) rose 0.9%.CryptocurrencyIn midday activity, bitcoin (BTC-USD) was up 0.8%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) rose 0.8%, ProShares Ether ETF (EETH) added 0.8%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.2% higher.

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