US stock futures edged up on Friday, continuing a record-setting trend as reduced geopolitical tensions and the beginning of earnings season maintained positive market sentiment.
Contracts linked to the S&P 500 increased by 0.3%, while Nasdaq 100 futures grew by 0.26%. Dow futures saw the most significant gain, rising by as much as 230 points, or about 0.47%.
This careful optimism follows a strong end to trading on Thursday, when the S&P 500 and Nasdaq Composite reached new all-time highs, climbing 0.3% and 0.4%, respectively. Meanwhile, the Dow Jones Industrial Average gained 115 points, effectively erasing previous losses tied to the recent Iran conflict and positioning major indices for a solid weekly close.
This positive momentum is fueled by a notable shift in the geopolitical landscape. President Donald Trump indicated de-escalation by stating that the Iran conflict “should be ending pretty soon” and describing the situation as “going along swimmingly.”
His remarks followed the announcement of a 10-day ceasefire agreement between Israel and Lebanon, along with ongoing discussions with Tehran. Earlier in the week, Trump suggested that a deal with Iran was “very close,” and mentioned that weekend talks might lead to a permanent resolution.
Markets have reacted quickly, with the Dow rising 1.4% over the week, while the S&P 500 and Nasdaq have surged 3.3% and 5.2%, respectively, as optimism for a peace deal encourages risk-taking.
On the corporate side, Netflix has been a notable underperformer in after-hours trading. The stock plummeted over 9% despite surpassing first-quarter expectations, as investors voiced concerns about its weaker-than-anticipated second-quarter forecast.
Attention now turns to the financial sector, with Truist Financial, State Street, and Fifth Third Bancorp set to release earnings before the market opens, which will provide additional insights into the health of the US economy.
