U.S. stock futures indicate a slightly positive open on Thursday, pointing to a potential continuation of the recent rally across equity markets.
Investors appear inclined to build on the momentum that pushed both the Nasdaq and the S&P 500 to fresh record closing highs in the previous session.
Market participants remain encouraged by the prospect of renewed negotiations between the United States and Iran, although no formal date for talks has been confirmed.
Reports suggest the two sides may agree to extend the current ceasefire by an additional two weeks to allow further diplomatic engagement.
“It’s like the events of the past month-and-a-half have been placed in the rearview mirror by investors,” said Dan Coatsworth, head of markets at AJ Bell.
He added, “The market’s sanguine perspective may be tested if the rhetoric about an end to the fighting isn’t matched by reality sooner rather than later.”
Futures saw modest gains following a Labor Department report showing initial jobless claims in the U.S. fell more than expected for the week ending April 11.
After a strong start to the week, equities continued to advance on Wednesday, lifting both the Nasdaq and the S&P 500 to new closing records.
The Nasdaq rose 376.93 points, or 1.6%, to 24,016.02, while the S&P 500 gained 55.57 points, or 0.8%, to 7,022.95. The Dow Jones Industrial Average, however, moved against the broader trend, slipping 72.27 points, or 0.2%, to 48,463.72.
Technology stocks were a key driver of the Nasdaq’s gains, with Broadcom (NASDAQ:AVGO) among the standout performers.
Broadcom shares jumped 4.2% after the company announced a long-term strategic partnership aimed at supporting Meta’s (NASDAQ:META) expanding artificial intelligence infrastructure.
In contrast, the Dow’s decline was partly driven by a notable drop in Caterpillar (NYSE:CAT), with the stock falling 3.0%.
Investors also continued to express confidence that tensions in the Middle East could ease, while awaiting further clarity on the next phase of U.S.-Iran negotiations.
In remarks to Fox Business, President Donald Trump said the conflict is “very close to over” and reiterated his view that Iran is keen to reach a deal “very badly.”
Trump also suggested the “stock market is going to boom” once the conflict involving the U.S., Israel and Iran is resolved.
Software stocks posted strong gains, with the Dow Jones U.S. Software Index surging 4.6%.
Brokerage stocks also advanced, as reflected by a 1.9% rise in the NYSE Arca Broker/Dealer Index.
On the downside, gold-related stocks declined sharply as bullion prices weakened, dragging the NYSE Arca Gold Bugs Index down by 3.1%.
Housing stocks were also under pressure after data showed a larger-than-expected drop in homebuilder sentiment, sending the Philadelphia Housing Sector Index down 2.0%.
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