United States stock futures advanced on Tuesday night (Wednesday AEST) after President Donald Trump signalled progress towards a potential agreement with Iran, lifting investor sentiment and easing geopolitical concerns.
By 10:05 am AEST (12:05 am GMT), Dow Jones futures were up 0.2%, S&P 500 futures rose 0.4%, and Nasdaq 100 futures climbed 0.8%.
Gains were led by technology stocks in extended trading, with Advanced Micro Devices surging 16.5% after delivering stronger-than-expected first-quarter results. The chipmaker beat forecasts on both revenue and profit and issued robust guidance, projecting second-quarter revenue of $11.2 billion, plus or minus $300 million, compared with expectations of $10.52 billion.
Super Micro Computer also rallied sharply, rising 18% after posting adjusted earnings per share of $0.84 for the third quarter, ahead of expectations of $0.62. However, revenue came in at $10.24 billion, below forecasts of $12.39 billion.
The company’s outlook impressed investors, with fourth-quarter earnings projected between $0.65 and $0.79 per share, well above Wall Street estimates of $0.55, according to LSEG data.
The positive momentum followed Trump’s announcement that he would pause “Project Freedom”, the U.S. military initiative to escort commercial vessels through the Strait of Hormuz.
In a Truth Social post, Trump cited “the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran” as a key factor behind the decision.
Oil prices declined in response, with West Texas Intermediate crude futures falling more than 2%, providing additional support to equity markets.
During the regular trading session, U.S. benchmarks closed higher, with the Dow Jones Industrial Average gaining 0.7%, the S&P 500 rising 0.8%, and the Nasdaq Composite advancing 1%.
Both the S&P 500 and Nasdaq reached new intraday and closing record highs.
Sentiment was further supported by comments from U.S. Defence Secretary Pete Hegseth, who said the ceasefire with Iran “certainly holds” and confirmed that “two U.S. commercial ships, along with American destroyers, have already safely transited the strait, showing the lane is clear”.
Looking ahead, market participants will monitor earnings from major companies including Walt Disney, CVS Health, Kraft Heinz, Marriott and Uber Technologies, all scheduled to report before Wednesday’s opening bell.
Investors will also focus on the release of ADP’s private payrolls report for April for further insight into labour market conditions.
