U.S. stock index futures turned lower on Thursday evening, tempering earlier gains that followed a diplomatic breakthrough between Washington and Tehran and a powerful advance in semiconductor stocks. The pullback came as trading activity remained light ahead of the Juneteenth holiday on Friday.
By 08:34 ET (00:34 GMT), S&P 500 Futures were down 0.2% at 7,553.0 points. Nasdaq 100 Futures slipped 0.3% to 30,622.50 points, while Dow Jones Futures were 0.1% lower at 51,934.0 points.
Diplomatic development lifts risk appetite
Investor optimism stemmed in large part from a memorandum of understanding signed remotely by U.S. President Donald Trump and Iranian President Masoud Pezeshkian on Wednesday evening. The MoU commits both sides to end military operations on all fronts, including Lebanon, and initiates a 60-day period of talks focused on Iran’s nuclear activities. Tehran also agreed not to procure or develop nuclear weapons under the terms announced.
A central economic implication of the agreement cited by market participants was the planned reopening of the Strait of Hormuz. That passage is a major conduit for Middle Eastern oil flows, and its reopening was a key element behind a fall in oil prices, which in turn eased some near-term concerns about energy-driven inflationary pressure.
Wall Street rebound led by chipmakers
Earlier in the session, U.S. stock indexes rebounded strongly after the signing. The S&P 500 climbed 1.1%, the NASDAQ Composite advanced 1.9%, and the Dow Jones Industrial Average rose 0.1%.
The Nasdaq outperformed as chipmaking shares rallied following comments by President Trump that Apple had agreed to work with Intel to develop chips in the United States. Intel Corporation (NASDAQ:INTC) surged by more than 10%, and that move helped lift other semiconductor names. The Philadelphia Semiconductor Index jumped 6.4% to finish at a record high.
Beyond semiconductors, broader technology stocks also saw gains amid continuing optimism about artificial intelligence, supporting the overall advance in the tech-heavy indexes.
Individual movers and corporate commentary
Intel was the clear standout on the day, recording a double-digit percentage gain that fed through to peers in the chipmaking space. Apple Inc rose slightly after comments from CEO Tim Cook indicating the company would need to raise device prices because of surging memory costs.
Market context and near-term considerations
Thursday’s rebound followed sharp losses in the prior session, when markets reacted to a Federal Reserve communication that traders interpreted as a hawkish stance on interest rates for the year. The earlier volatility and the subsequent rebound underscore how geopolitical developments and monetary policy messaging continue to intersect in driving market moves.
Traders also noted that overall volume was muted as market participants prepared for the Juneteenth holiday, which can reduce liquidity and potentially increase volatility when activity resumes.
What to watch next
Market participants will be watching the 60-day diplomatic talks referenced in the memorandum for any signs of progress or breakdown, and they will continue to monitor semiconductor and broader technology stocks for leadership cues. Energy markets will remain sensitive to developments affecting the Strait of Hormuz, given the potential implications for oil flows and price dynamics.