U.S. equity futures traded in positive territory on Wednesday, indicating another higher open as investors looked to build on the recent rally that has carried the Dow Jones Industrial Average and the S&P 500 to fresh all-time closing highs.
Confidence remained supported by easing energy prices and expectations that diplomatic negotiations could soon lead to the reopening of the Strait of Hormuz.
Oil retreat continues to underpin markets
The recent advance in U.S. equities has coincided with a sharp fall in crude oil prices, which have dropped by more than 10% over the past two sessions.
Although oil prices edged higher during Wednesday’s trading, market participants continued to focus on reports suggesting the United States and Iran are moving closer to an agreement that would restore shipping through the strategically important Strait of Hormuz.
Disney boosts pre-market sentiment
Corporate earnings remained another source of support for the market.
Disney (NYSE:DIS) gained more than 3% in pre-market trading after reporting fiscal third-quarter results that surpassed analyst expectations, adding to the positive tone created by the latest earnings season.
Record highs extend across Wall Street
Stocks posted another powerful advance on Tuesday, with all three major U.S. indices finishing comfortably higher.
The Dow Jones Industrial Average climbed 907.47 points, or 1.7%, to a record close of 54,085.88.
The Nasdaq Composite advanced 671.10 points, or 2.6%, ending at 26,584.99, while the S&P 500 rose 136.02 points, or 1.8%, to a new record of 7,736.52.
Although the major averages gave back part of their intraday gains before the close, investor appetite remained strong.
Palantir and lower oil prices drive momentum
Wall Street also benefited from another steep decline in oil prices. U.S. crude futures dropped 5.7% on Tuesday after losing more than 5% in the previous session.
Prices reversed lower after U.S. Treasury Secretary Scott Bessent said an agreement between Washington and Tehran to reopen the Strait of Hormuz could be reached within days.
Technology stocks also outperformed after Palantir (NASDAQ:PLTR) reported quarterly results that exceeded expectations and lifted its full-year guidance, sending the shares almost 30% higher.
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