Stock Futures Climb Amid Potential U.S.-Iran Deal
On May 5, 2026, traders were active on the floor of the New York Stock Exchange in New York City.
Early Wednesday, stock futures saw a rise after reports suggested that the United States and Iran were close to reaching an agreement to conclude the ongoing conflict. President Donald Trump noted that “significant progress” has been achieved towards this deal.
S&P 500 futures experienced an uptick of 0.7%, while Nasdaq 100 futures climbed by 1.2%. The Dow Jones Industrial Average futures saw an increase of 304 points, equivalent to a 0.62% rise.
This upward movement in futures followed Trump’s announcement to suspend Project Freedom, a plan that involved redirecting ships from the Strait of Hormuz. On social media, he attributed this decision to the “significant progress” made towards a comprehensive agreement with Iranian officials.
In after-hours trading, shares of Advanced Micro Devices (AMD) surged by 16% after the company revealed a positive forecast for its second-quarter sales, estimating around $11.2 billion. AMD also surpassed expectations in terms of its first-quarter revenue and profits.
During the regular trading session, the S&P 500 saw a rise of 0.81%, and the tech-heavy Nasdaq gained 1.03%. Both indexes hit new intraday and closing records, while the Dow added 356.35 points, marking a 0.73% increase.
These gains followed strong earnings reports, with around 85% of S&P 500 companies surpassing expectations, and 77% reporting unexpected earnings growth.
Investor sentiment was further lifted by Defense Secretary Pete Hegseth’s remarks, stating that a ceasefire between the U.S. and Iran is “certainly in place.” He added that two U.S. commercial vessels and a destroyer had successfully navigated through the strait, indicating that the shipping routes remained open.
Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, mentioned on CNBC’s “Closing Bell: Overtime” that stocks seem to be “climbing a wall of fear.” She noted, “It’s possible that those involved in geopolitics might not fully grasp the current dynamics around AI trade and revenue, especially regarding their influence on S&P 500 earnings.” She added that while the market may not be on a straightforward upward trajectory, it doesn’t appear to be overheating either.
Several major companies, including Disney, CVS Health, Kraft Heinz, Marriott, and Uber Technologies, are scheduled to announce their earnings prior to the opening bell. Additionally, traders are awaiting ADP’s private employment report for April.
