U.S. stock futures edged lower in overnight trading as markets awaited an official update on the U.S.-Iran war, even as reports indicated the two countries had negotiated a 60-day ceasefire extension.
According to a report from Axios, the U.S. and Iran reached a tentative deal to extend the ceasefire by 60 days and were on track to discuss Tehran’s nuclear program.
The proposed deal would guarantee unrestricted shipping through the Strait of Hormuz, requiring Iran to remove all mines from the waterway within 30 days.
The deal was awaiting President Donald Trump’s final approval, with one U.S. official saying the president wanted “a couple of days to think about it.”
Iran had agreed to the deal, though official confirmation remained pending at the time of reporting, according to Axios.
U.S. officials cautioned that earlier talks had also appeared close to success before repeatedly stalling, making this the biggest potential diplomatic breakthrough since the war began.
The Nasdaq 100 futures fell 0.16%, while the S&P 500 futures were down 0.03% and Dow futures were flat as of 10:18 p.m. ET.
On Thursday, U.S. benchmark indexes closed higher, with the S&P 500 gaining 0.91% and the Nasdaq 100 advancing 0.84% to hit 52-week highs, while the Dow Jones index added approximately 25 points.
Technology stocks outperformed the broader market, with cloud data platform Snowflake Inc. jumping more than 36% at market close on strong earnings results, while drone maker Ondas Inc. rose over 22%.
Dell Technologies Inc. (NYSE: DELL) posted first-quarter earnings results after the bell that blew past expectations, sending its stock up more than 38% in after-hours trading, with first-quarter revenue soaring more than 88%.
AST SpaceMobile Inc. (NASDAQ: ASTS) rose to a yearly intraday high amid continued optimism around space stocks, though shares slid nearly 7% in after-hours trading following a Blue Origin rocket explosion ahead of its satellite launch.
BlackBerry Ltd. (NYSE: BB) shares climbed to a 52-week high, clocking five consecutive days of gains amid broader technology sector strength and continued optimism surrounding its government-related cybersecurity certification.
Super Micro Computer Inc. (NASDAQ: SMCI) climbed more than 8% at close and continued higher in extended hours after the company said its cooperation with Taiwanese authorities led to the arrest of three suspects tied to the smuggling of AI servers into China.
April’s Personal Consumption Expenditures Index advanced 3.8% on an annualized basis, largely in line with expectations, while the U.S. economy grew at 1.6% in the first quarter, below earlier estimates.
Oil futures declined in the overnight session amid the ceasefire extension reports, with Brent crude futures down to around $92.74 a barrel and WTI crude futures falling about 1.27% to $87.77 a barrel.
Yields on the 10-year Treasury fell to 4.437%, while gold prices climbed to around $4,504.65 per ounce.
Robin Brooks, a Senior Fellow at The Brookings Institution and a former chief FX strategist and managing director at Goldman Sachs, offered his view on the trajectory of long-term yields once the conflict concludes.
“War with Iran and associated inflation fears are a temporary force for long-term yields to rise. As soon as the war ends, yields will fall,” he said in a post on X.
Brooks added, “But central bank yield caps like those of the BoJ or ECB are a permanent force for yields to rise. Too much debt…”
Asian markets were all trading higher early Friday, with the KOSPI up about 2.5%, while the Nikkei 225, Hang Seng, and Australian indexes were also gaining at the open.
