Wall Street poised for a firmer open as hopes for a U.S.-Iran agreement support sentiment: Dow Jones, S&P, Nasdaq, Futures
May 29, 2026 9:21 AM
IH Market News
U.S. stock futures traded modestly higher ahead of Friday’s opening bell, indicating that Wall Street could extend the gains recorded in the previous session as investors continued to monitor developments surrounding a potential agreement between the United States and Iran.
Improving confidence that diplomatic efforts may lead to a lasting de-escalation in the Middle East has helped bolster risk appetite, while a sharp decline in oil prices has further supported market sentiment.
Crude oil falls on reports of ceasefire framework
Oil markets came under renewed pressure after reports suggested Washington and Tehran had reached a framework agreement to extend their ceasefire for a further 60 days.
U.S. crude futures were down 1.4% following the reports, which indicated that the proposed arrangement could pave the way for the reopening of the Strait of Hormuz and restart negotiations concerning Iran’s nuclear programme.
The reported agreement still requires final approval from President Donald Trump, leaving investors cautious as they await official confirmation.
Dell rally adds support to futures markets
Technology stocks were also set to provide a boost to sentiment after Dell Technologies (NYSE:DELL) surged more than 30% in pre-market trading.
The computer manufacturer delivered fiscal first-quarter results that exceeded market expectations and accompanied the release with upgraded guidance for the full year.
The strong reaction to Dell’s earnings helped reinforce optimism around the technology sector, which has continued to be one of the key drivers of broader market performance.
Investors remain cautious ahead of official confirmation
Despite the positive tone, some investors appeared reluctant to make aggressive bets before receiving confirmation of the reported U.S.-Iran agreement.
“Overall, markets are heading into the weekend in a good position as risk appetite has improved as geopolitical fears ease and inflation data avoids a major upside surprise,” said Daniela Hathorn, Senior Market Analyst at Capital.com.
“However, positioning remains optimistic, valuations are elevated and much of the recent rally still relies on assumptions that tensions continue to de-escalate and earnings remain resilient,” she added. “That means investors are likely to remain highly sensitive to both geopolitical headlines and incoming inflation data in the weeks ahead.”
Stocks rebounded sharply during Thursday’s session
Wall Street experienced a volatile trading day on Thursday, with major indices initially moving lower before staging a strong recovery later in the session.
The rebound pushed the major averages back into positive territory, with technology shares leading the advance.
All three benchmark indices finished at fresh record closing highs. The Nasdaq climbed 242.74 points, or 0.9%, to 26,917.47, while the S&P 500 gained 43.27 points, or 0.6%, to close at 7,563.63. The Dow Jones Industrial Average edged up 24.69 points, or 0.1%, ending the day at 50,668.97.
Axios report sparks market turnaround
The recovery in equities followed a report from Axios indicating that U.S. and Iranian negotiators had reached agreement on a 60-day memorandum of understanding.
Citing two U.S. officials and a regional source involved in the mediation process, Axios reported that the proposed memorandum would both extend the ceasefire and initiate discussions concerning Iran’s nuclear programme.
According to the report, President Donald Trump has yet to provide final approval, with one U.S. official suggesting that he wanted additional time to consider the proposal.
Geopolitical tensions continue to influence oil markets
Following the Axios report, crude prices retreated from earlier highs, with U.S. oil futures ultimately ending the session modestly higher despite having surged by as much as 4.3% during trading.
Oil prices had initially jumped overnight after reports that the United States launched another round of what it described as “self-defense strikes” in southern Iran, prompting Tehran to respond with what were reported to be attacks targeting a U.S. air base.
“Investors are still broadly positioned for a de-escalation scenario in the Middle East, but recent headlines are a reminder that the path toward any agreement remains fragile,” said Daniela Hathorn, Senior Market Analyst at Capital.com.
Inflation data comes in slightly below expectations
Economic data released on Thursday also provided support for equities after inflation readings came in marginally softer than anticipated.
The Commerce Department reported that its Personal Consumption Expenditures (PCE) Price Index increased by 0.4% in April, following a 0.7% rise in March. Economists had expected an increase of 0.5%.
On an annual basis, the headline PCE inflation rate accelerated to 3.8% from 3.5%, matching consensus forecasts.
Excluding food and energy prices, the core PCE index rose by 0.2% in April after increasing by 0.3% in March. Economists had forecast another 0.3% rise.
The annual core inflation rate edged up to 3.3% from 3.2%, in line with expectations.
Technology and biotechnology stocks lead gains
Technology shares delivered some of the strongest performances of the session, helping drive the Nasdaq to another record close.
The Dow Jones U.S. Software Index jumped 3.4%, while the NYSE Arca Computer Hardware Index advanced 2.9%.
Biotechnology stocks also recorded notable gains, with the NYSE Arca Biotechnology Index rising 2.6%.
Additional strength was seen in gold, pharmaceutical and healthcare shares, while oil services companies and utility stocks underperformed as investors rotated toward growth-oriented sectors.
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Original: Wall Street poised for a firmer open as hopes for a U.S.-Iran agreement support sentiment: Dow Jones, S&P, Nasdaq, Futures
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