United States stock futures were little changed on Thursday night (Friday AEST) after President Donald Trump confirmed that Israel and Lebanon had agreed to a 10-day ceasefire, reinforcing investor optimism around easing geopolitical tensions.
By 9:30 am AEST (11:30 pm GMT), Dow Jones futures rose 0.2%, S&P 500 futures edged up 0.1%, while Nasdaq 100 futures were broadly flat.
In extended trading, Netflix shares fell sharply, dropping 9% despite beating earnings estimates, as investor sentiment was weighed down by weaker-than-expected second-quarter guidance.
The streaming giant also announced that co-founder and chairman Reed Hastings will step down, adding to uncertainty around its outlook.
During Thursday’s regular session, all three major U.S. indices finished higher, with the S&P 500 and Nasdaq Composite gaining 0.3% and 0.4%, respectively, both notching fresh intraday and closing records. The Dow Jones Industrial Average added 0.2%.
The S&P 500 has now fully erased its losses since the onset of the Iran conflict, extending gains after Trump said the leaders of Israel and Lebanon had agreed to a ceasefire following talks in Washington. The temporary truce is set to begin at 5 pm ET (9 pm GMT).
Trump also signalled continued diplomatic progress, stating that the next round of in-person negotiations between the United States and Iran could take place “probably, maybe, next weekend”.
These developments build on his earlier remarks this week that the Iran war is “very close to over”, and that Tehran is eager to reach an agreement, saying it wants to “make a deal very badly”.
Expectations of a potential peace deal have driven a strong rally in equities in recent sessions. The three major indices are all on track to post weekly gains, with the Dow up 1.4%, while the S&P 500 and Nasdaq have advanced 3.3% and 5.2%, respectively.
Investors are also turning their attention to the ongoing earnings season. Several major financial institutions are scheduled to report ahead of Friday’s opening bell, including State Street, Truist Financial, Regions Financial, Fifth Third Bancorp and Ally Financial.
