U.S. stock futures rose on Thursday as investors looked to seize opportunities in technology stocks that faced selling pressure in the previous session, amid growing hopes for progress in peace talks between the U.S. and Iran.
Shares of semiconductor manufacturers rebounded after a sharp sell-off on Wednesday that pushed major indices on Wall Street down more than 1 percent, putting the tech sector into correction territory, after it fell more than 10 percent from its closing highs.
Shares of Nvidia, Intel, and Micron Technology rose between 1.2 percent and 4.7 percent in pre-market trading, according to Reuters.
Despite ongoing airstrikes between the U.S. and Iran for the second consecutive day, three Iranian sources and a European official reported that the two sides are exchanging messages about the details of a memorandum of understanding following a preliminary political understanding, although some issues remain under negotiation.
Expectations of a possible agreement to reopen the Strait of Hormuz have helped alleviate concerns about energy supplies, which has reflected in oil prices.
By 6:22 AM Eastern Time, Dow Jones futures rose by 367 points, or 0.73 percent, and S&P 500 futures gained about 53.75 points, or 0.74 percent, while Nasdaq 100 futures jumped by 338.75 points, or 1.19 percent.
The S&P 500 index had fallen approximately 4 percent since reaching its record closing high in early June, as investors face a mix of challenges including high valuations of tech stocks, increasing fears of tightening monetary policy, and inflationary pressures from rising energy prices due to the conflict in the Middle East.
The upcoming listing of Elon Musk's SpaceX stock, which could raise its market value to around $1.75 trillion, is expected to be a significant test of the strength of the rally that has driven U.S. stocks to record levels this year.
Investors are also awaiting the release of the U.S. producer price index and weekly unemployment claims data at 8:30 AM Eastern Time for additional clues about the Federal Reserve's monetary policy path ahead of its upcoming meeting next week.
Data released on Wednesday showed that consumer inflation in the U.S. recorded its fastest growth rate in more than three years in May, driven by rising energy prices amid geopolitical tensions in the Middle East.
Individual stocks saw Oracle's shares drop by 7 percent after the company announced its capital spending plans for fiscal 2027 would exceed Wall Street's expectations, indicating the massive scale of investments needed to expand its artificial intelligence infrastructure.
In contrast, Navan's shares surged by 17.6 percent after the business travel booking service raised its annual revenue and operating profit forecasts, backed by continued strong demand for corporate travel and an expanding customer base.