US stock-index futures advanced on Friday as a pullback in Treasury yields gave investors room to add risk before the opening bell, even as the Middle East conflict remained the market’s central geopolitical overhang.
Dow, S&P 500 and Nasdaq 100 futures all climbed, helped by gains in megacap technology and chip stocks.
Traders were also weighing signs of progress in US-Iran discussions, the handover at the Federal Reserve and a final reading of May consumer sentiment.
The move followed another strong Wall Street session, with the Dow closing at a record and the S&P 500 extending its weekly winning streak.
5 things to know before market opens
1. Futures climb as yields ease
Dow futures rose 124 points, or 0.25%, while contracts tied to the S&P 500 and Nasdaq 100 added 0.18% and 0.27%
The yield on the 10-year Treasury note slipped 2.2 basis points to 4.56%, easing one of the main pressures on equity valuations.
2. US-Iran talks steady the risk mood
The advance in futures was also tied to tentative signs that diplomacy may be gaining traction in the Middle East.
Iran’s foreign minister met Pakistan’s interior minister to discuss proposals aimed at ending the nearly three-month-old conflict, while US Secretary of State Marco Rubio said there had been “some good signs” in talks.
Still, Washington and Tehran remain divided over Iran’s uranium stockpile and control of the Strait of Hormuz, keeping oil and inflation risks firmly on investors’ radar.
3. Chips and megacaps recover before the bell
Megacap and semiconductor shares strengthened in premarket trading, extending the AI-led bid that has helped US equities recover to record highs this month.
Nvidia rose 0.7%, even after slipping in the previous session despite issuing a strong quarterly forecast.
Intel, AMD, Marvell Technology and Broadcom gained between 0.9% and 3.2%, showing that investors remain willing to buy into the chip trade when yields move lower.
4. Workday, Estée Lauder and Take-Two lead movers
Workday jumped 11.1% after the enterprise software company beat first-quarter revenue and profit estimates, easing concerns that AI challengers could quickly disrupt demand for traditional software vendors.
The company’s subscription revenue rose 14.3% to $2.35 billion, while adjusted earnings per share of $2.66 topped expectations of $2.51.
Estée Lauder advanced 10.1% after the cosmetics maker and Spanish perfumery group Puig ended merger talks that could have created a roughly $40 billion premium beauty group.
Investors welcomed the decision after analysts had warned that a deal could have stretched Estée Lauder’s balance sheet and distracted management from its turnaround programme.
Take-Two Interactive rose 5% after reaffirming the 19 November 2026 launch date for Grand Theft Auto VI, the most important release in the company’s pipeline.
The stock gained even though the company’s annual bookings forecast came in below Wall Street expectations.
5. Fed transition and sentiment data move into focus
Investors will also watch Washington later in the day, with President Donald Trump expected to swear in Kevin Warsh as Federal Reserve chair.
The handover comes at a sensitive point for markets, with investors debating whether stubborn inflation and higher oil prices will limit the scope for rate cuts.
A final reading of May consumer sentiment is also due, giving traders another check on household confidence after a volatile period for energy prices, bond yields and global risk appetite.
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