U.S. stock futures surged early Wednesday, following strong gains in Asian equities, as growing expectations of a diplomatic breakthrough between Washington and Tehran lifted global investor sentiment.
Futures tied to the Dow Jones Industrial Average rose 544 points, or 1.1%, while S&P 500 futures gained 0.9% and Nasdaq 100 futures advanced 1.6%, extending momentum in technology shares.
Asian markets had already set the tone, with equities across the region climbing to record levels, supported by a rally in technology stocks and optimism that easing U.S.-Iran tensions could stabilize energy markets.
The gains followed a report by Axios that the United States and Iran are nearing a framework agreement to end months of conflict. The report said the proposed deal could include a temporary halt to Iran’s nuclear enrichment program, while an Iranian foreign ministry spokesperson told CNBC that Tehran is reviewing a U.S. proposal aimed at resolving the standoff.
Earlier, Asian equities climbed to fresh record levels on Wednesday morning, driven by a strong rally in technology stocks and renewed geopolitical optimism after former U.S. President Donald Trump signaled progress toward a potential agreement with Iran. Oil prices declined as easing tensions in the Middle East lifted investor sentiment.
MSCI’s broad index of Asian shares climbed as much as 1.7% to an all-time high, led by technology firms benefiting from renewed enthusiasm around artificial intelligence. South Korea’s benchmark KOSPI Index jumped more than 6% to a record, with Samsung Electronics soaring 13% and reaching a market valuation of $1 trillion—becoming only the second Asian company to cross that milestone.
Oil prices retreated on expectations that geopolitical risks could ease. Brent crude fell 1.7% to around $108 per barrel, while West Texas Intermediate dropped 1.6% to $100.65. The U.S. dollar, which had strengthened during the recent conflict involving Iran, weakened against other major currencies.
Globally, equities extended their gains, with MSCI’s world index also touching a record high as lower energy prices improved the outlook for inflation and economic growth. On Wall Street, major indices closed at all-time highs on Tuesday, supported by stronger-than-expected earnings from Advanced Micro Devices and Super Micro Computer. Futures tied to the Nasdaq 100 Index rose 0.5%, signaling continued momentum in tech shares.
Investor confidence was further buoyed by hopes that easing geopolitical tensions could reduce energy costs and uncertainty, reinforcing support for equities despite elevated valuations. The improving macroeconomic backdrop has also revived the AI-driven rally, with expectations of stronger corporate earnings gaining traction.
Trump said he would temporarily pause a U.S.-led mission aimed at assisting ships stranded in the Strait of Hormuz to allow room for negotiations with Iran aimed at ending the conflict. He described the progress toward a deal as “great,” though he provided no specifics and confirmed that a U.S. blockade on vessels linked to Iranian ports would remain in place.
The remarks marked a shift in tone after recent criticism from Trump over the pace of diplomatic efforts and dissatisfaction with Tehran’s proposals, leaving markets cautiously optimistic but awaiting concrete developments.
Elsewhere, China’s CSI 300 Index rose 1.5% as trading resumed following a public holiday.
In bond markets, declining oil prices supported U.S. Treasuries, with long-dated bonds rebounding and the 30-year yield slipping back below 5%. However, traders are increasingly pricing in the possibility that the Federal Reserve could opt for another interest rate hike rather than a cut.
There was no cash trading in U.S. Treasuries during Asian hours due to a holiday in Japan, though futures edged higher.
In commodities and digital assets, gold climbed 1.6% to around $4,630 per ounce. Meanwhile, Bitcoin slipped 0.6% to about $81,180, while Ethereum declined 0.8% to roughly $2,363.
Muhammad Luqman is Associate Editor at Views News Now. He writes on wide-ranging issues including economy, South Asia, the Middle East, agriculture, economy and innovation. Luqman has worked some of the leading news organizations and won acclaim for his original and research-based works.
