U.S. stock index futures climbed on Thursday evening after President Donald Trump announced that a peace deal with Iran had been achieved and was expected to be signed in the near term. The remarks followed a robust day for equities on Wall Street and coincided with market anticipation of SpaceX's trading debut on Friday.
By 19:14 ET (23:14 GMT), S&P 500 Futures were up 0.2% at 7,408.50 points, Nasdaq 100 Futures rose 0.3% to 29,542.0, and Dow Jones Futures advanced 0.1% to 50,933.0.
Market backdrop
Futures extended gains after a broad rally earlier in the session, when the S&P 500, the Dow Jones Industrial Average and the NASDAQ Composite each climbed, with moves ranging from 1.7% to 2.6% on the day. Technology names led the advance, and semiconductor stocks in particular rebounded further from steep losses recorded in the prior week. Optimism tied to artificial intelligence remained a supporting theme in the sector.
Traders reacted to President Trump's comments that a document outlining an agreement with Iran could be signed in Europe soon, possibly over the coming weekend. Earlier in the day, the president had reversed course on fresh attacks he had previously promised against Iran, stating that the Strait of Hormuz would reopen immediately and that the U.S. would end its naval blockade of the country. Media reports also indicated further talks between U.S. and Iranian officials over a potential peace accord, with reporting that the parties discussed mechanisms to unfreeze Iranian funds.
Investors said the remarks - which the president has made in past instances - helped temper fears of escalating military conflict in the Middle East following a week in which the U.S. and Iran exchanged airstrikes. Those developments had raised concerns about inflationary pressures tied to the conflict; some of that pressure eased after core producer price index inflation for May came in softer than expected.
SpaceX prepares to list after record IPO
SpaceX (NASDAQ:SPCX) is slated to begin trading on the Nasdaq on Friday after the company priced its initial public offering at $135 per share. The offering raised $75 billion, marking the largest IPO in U.S. history by proceeds. SpaceX sold 555.56 million shares in the offering and achieved a valuation of $1.77 trillion.
The valuation is computed on the basis of 13.08 billion shares outstanding, though that figure could rise if underwriters exercise their option to sell additional shares. The lofty valuation reflects investor appetite for the company and is driven in part by founder Elon Musk's ambitious statements about future projects, including building data centers in space and establishing colonies on Mars. At the IPO price, the shares are valued at roughly 90 times the company's projected revenue for 2025.
What this means for markets
The combination of easing geopolitical tensions and a major, successful IPO contributed to risk-on sentiment late in the trading day. Technology and chipmaking stocks benefitted from renewed buying, while market participants also digested inflation signals from producer prices that showed some cooling in underlying price pressures.
SpaceX's entry onto public markets will be watched closely for its effects on investor allocation to high-valuation growth names and for any immediate price discovery that could influence other large-cap technology listings.
Summary takeaway
U.S. futures rose after President Trump's comments on a potential Iran deal and after a strong equity session led by technology stocks. SpaceX's historic IPO and imminent Nasdaq debut added another focal point for investors, even as markets parsed softer-than-expected core producer price inflation data for May.