Nasdaq Futures Soar 1.2% as Mideast Tensions Ease

U.S. Stock Index Futures Advance as Middle East Tensions Ease

U.S. stock index futures rose Monday, led by gains in the tech-heavy Nasdaq 100, following a reduction in tensions in the Middle East after several days of hostilities between the United States and Iran.

A U.S. official stated on Sunday that both sides would reduce the intensity of actions and resume talks aimed at ending the conflict, supporting expectations that an interim agreement reached earlier in the month could remain in place.

Diplomatic steps to conclude the conflict have influenced investor views, though statements from officials and periodic incidents in the region have at times increased the possibility of wider involvement that could affect oil prices.

Kyle Rodda, senior financial market analyst at Capital.com, said the positions expressed by the U.S. and Iran had shifted again just before the market open, with both indicating they would reduce strikes ahead of further discussions. He added that actions by the Trump administration to influence oil prices and equity markets have sustained expectations that officials will take steps to reach an agreement.

As of 7:23 a.m. EST, U.S. stock futures indicated a higher opening, with technology shares showing the largest moves.

Nasdaq futures increased 356.75 points, or 1.21 percent, to 29,725.00, while S&P 500 futures rose 62.75 points, or 0.85 percent, to 7,464.50.

Dow Jones Industrial Average futures gained 226 points, or 0.43 percent, to 52,435.00, and Russell 2000 futures advanced 10.60 points, or 0.35 percent, to 3,033.20.

Concerns over spending on artificial intelligence have added uncertainty to trading. A decline the previous week reduced prices for semiconductor stocks and shares of companies often grouped as the Magnificent Seven.

Apple shares trailed other members of that group in premarket trading on Monday after falling 4.8 percent the prior week. The company increased prices for iPad and MacBook models on Thursday, citing higher costs for memory and storage chips linked to data center construction in the AI sector.

Fabien Yip, market analyst at IG, said that if consumer demand weakens, the sales volumes supporting chip profit margins could become less stable, which in turn could affect expectations for earnings growth.

Market participants anticipate at least one interest rate increase by the Federal Reserve this year to address inflation. Those expectations may be reviewed after the release of U.S. employment data for June later in the week.

Shares of Viridian Therapeutics rose 12.7 percent after the Food and Drug Administration approved a company drug for treating thyroid eye disease.