US equity futures rose Thursday as investors looked past fresh US strikes on Iran that briefly pushed crude oil higher. Nasdaq 100 futures added 190 points, or 0.43%, while the S&P 500 and Dow also gained. Chip stocks led the premarket advance, with the Magnificent Seven group trading at its cheapest in about a decade.
Nasdaq 100 futures rose 0.43%, or 190 points, after fresh US strikes on Iran briefly pushed crude oil higher before it cooled from its highs.
The move higher came as crude oil pared its initial gains, easing the inflation fears that had been revived by the spike. President Donald Trump declared an end to the Iran ceasefire agreement, saying "MoU is over" following fresh strikes, according to reports.
S&P 500 futures gained 0.29%, while Dow Jones Industrial Average futures added 0.29%. Chip stocks led the premarket advance, with Micron Technology Inc., Advanced Micro Devices Inc., and Intel Corp. all surging. The semiconductor strength added to a broader rotation into technology names, with the Magnificent Seven group of megacap stocks now trading at their cheapest valuations in about a decade, according to market data.
The resilience in equity futures suggests investors are betting the geopolitical tensions will remain contained, reducing the risk of a sustained oil-driven inflation shock that could complicate Federal Reserve policy. The premarket rally was concentrated in growth and technology stocks, with chipmakers leading the charge.
The Magnificent Seven — Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia Corp., Meta Platforms Inc., and Tesla Inc. — have collectively become cheaper relative to earnings, with the group's valuation compressing to levels not seen in about a decade, according to market data.
Crude oil initially spiked after the US strikes before retreating, as the market weighed the risk of supply disruptions against the likelihood of a diplomatic resolution. The spike-and-retreat pattern removed the primary channel for renewed inflation fears, though the underlying US-Iran conflict could reintroduce uncertainty and Fed policy concerns, creating a potentially volatile session for technology and growth stocks.
This article is for informational purposes only and does not constitute investment advice.
