U.S. equity futures traded higher on Wednesday after semiconductor stocks powered another strong Wall Street session, sending the S&P 500 and Nasdaq Composite to fresh record closes. Investors continued to monitor developments surrounding U.S.-Iran peace negotiations while maintaining strong interest in artificial intelligence-related investments.
As of 03:34 ET, futures on the Dow Jones Industrial Average were up 127 points, or 0.3%. S&P 500 futures gained 0.1%, while Nasdaq 100 futures advanced 0.2%.
Markets ended Tuesday mostly higher, with the S&P 500 and Nasdaq Composite both setting new closing records. The Dow Jones Industrial Average was the only major index to finish lower.
Technology and semiconductor shares remained at the centre of the rally as investors continued to pour money into companies expected to benefit from rapid AI infrastructure expansion.
“Iran dominated the market conversation, but the parabolic surge in AI-linked stocks is occurring independent of anything happening in the Middle East,” analysts at Vital Knowledge said in a note to clients.
Micron Extends AI-Driven Surge
Micron (NASDAQ:MU) was among the biggest gainers, with its latest rally lifting the company’s market capitalisation above the $1 trillion mark for the first time in its history.
The momentum continued in premarket trading Wednesday, with the stock adding more than 4%.
Demand for advanced memory chips used in artificial intelligence systems has remained exceptionally strong as major technology companies accelerate AI investment. Micron, one of the few large-scale producers of high-bandwidth memory chips, recently announced that all of its HBM supply capacity through 2026 has already been allocated.
The supply shortage has significantly boosted memory-chip pricing and improved expectations for Micron’s future profitability. Reuters, citing regulatory filings, reported that institutional investors have sharply increased exposure to the company.
Markets Await Clarity on Iran Conflict
Investors also remained focused on diplomatic efforts aimed at ending the conflict between the United States and Iran, which has been ongoing for nearly three months.
Al Jazeera reported that indirect negotiations between Washington and Tehran have continued despite military exchanges earlier this week. U.S. officials said the fragile ceasefire remains in place, while Iran warned it would retaliate if the agreement is broken.
Reports earlier this week suggested both sides were close to reaching a framework agreement that could include an extension of the ceasefire and the reopening of the Strait of Hormuz, a critical global oil shipping route. The channel has been heavily disrupted since the conflict began in late February.
However, tensions in the wider region remain elevated. According to the Associated Press, fresh clashes erupted in southern Lebanon between Israeli forces and Hezbollah militants backed by Iran. Tehran has reportedly insisted that any broader peace agreement must also address the fighting in Lebanon.
Oil Prices Ease From Recent Highs
Oil prices declined as traders reacted to the latest diplomatic developments.
Brent crude futures fell 2.2% to $97.38 a barrel. Although prices have retreated from recent peaks above $100, they remain substantially above levels seen before the conflict began.
The Strait of Hormuz continues to be a key focus for energy markets after Iran effectively restricted maritime traffic following the escalation involving U.S. and Israeli forces.
Reports that several ships had successfully passed through the waterway this week improved hopes of a gradual reopening, although oil shipments remain far below normal levels.
Samsung Workers Back Wage Agreement
Separately, a majority of unionised workers at Samsung Electronics (USOTC:SSNHZ) approved a tentative wage agreement on Wednesday, removing the threat of a major strike that could have disrupted global semiconductor supply chains and weighed on South Korea’s economy.
The union said around 74% of participating workers voted in favour of the agreement. The deal halts plans for an 18-day strike involving roughly 48,000 employees, most of whom work in Samsung’s semiconductor operations.
Samsung shares finished the session 2.7% higher in Seoul.
The wage agreement, reached with government mediation, followed difficult negotiations over bonuses and profit-sharing tied to soaring demand for AI-related memory chips.
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