U.S. Stock Futures Hold Steady After Rally on Easing U.S.-Iran Tensions

U.S. stock index futures were little changed in Thursday evening trading, holding gains after Wall Street rallied on remarks from President Donald Trump that suggested a de-escalation of tensions with Iran.

By 8:40 PM ET (00:40 GMT), S&P 500 Futures were down 0.1%, Nasdaq 100 Futures fell 0.3%, and Dow Jones Futures were trading flat, according to data from Investing.com.

Wall Street Gains on Diplomatic Hopes

The previous session saw the three main U.S. indexes close higher, recovering from earlier losses. The S&P 500 advanced 0.8%, the NASDAQ Composite climbed 1.3%, and the Dow Jones Industrial Average rose 0.3%.

Investor sentiment improved after President Trump announced that Iran had sought negotiations, easing fears of a wider military conflict. The remarks helped cool oil prices, which had surged earlier in the week on concerns about potential supply disruptions through the Strait of Hormuz. The retreat in energy costs alleviated worries that higher fuel prices could reignite inflationary pressures.

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Economic Picture and Fed Outlook

Technology shares, particularly chipmakers, led the market's advance on Thursday. The Philadelphia Semiconductor Index gained approximately 3% for the second consecutive session amid renewed optimism about demand related to artificial intelligence.

Investors also processed new economic data. Initial jobless claims for the week edged down to 215,000, signaling continued resilience in the labor market. However, minutes from the Federal Reserve's last meeting indicated that officials remain concerned that persistent inflation could require keeping interest rates elevated for an extended period. Attention is now shifting to the start of the second-quarter earnings season, with major banks scheduled to report next week.