U.S. stock index futures rose on May 22 as Treasury yields eased and investors rotated back into large-cap technology and semiconductor issues, even as markets continued to monitor early signs of progress in negotiations to halt the nearly three-month-long conflict in the Middle East.
Media accounts reported that Iran's foreign minister held talks with Pakistan's interior minister to review proposals intended to end the conflict. Meanwhile, U.S. Secretary of State Marco Rubio told reporters on Thursday there had been "some good signs" in the discussions, though he emphasized that Tehran and Washington still disagreed over Iran's uranium stockpile and control of the Strait of Hormuz. Those outstanding points remain central sticking points in the talks.
Global equity performance has been uneven since the conflict began in late February, with most European and Asian bourses yet to return to pre-conflict levels. By contrast, U.S. stock benchmarks have climbed to fresh record highs this month, supported by renewed enthusiasm for artificial intelligence-related investments and confidence in resilient corporate earnings.
UBS Global Wealth Management recently raised its year-end 2026 target for the S&P 500 to 7,900 from 7,500, citing persistent consumer spending and robust demand for data center infrastructure as rationale for a higher outlook. Nevertheless, the market's recovery has been irregular as investors weigh the inflationary implications of rising oil prices, which have pushed government bond yields higher globally and weighed on risk appetite at times.
Despite those headwinds, the S&P 500 was on track for an eighth straight weekly gain, a winning run that would represent its best streak since December 2023. "Geopolitical risk has become less immediately damaging for sentiment, even though it has not disappeared," said Naeem Aslam, chief investment officer at Zaye Capital Markets. He added that markets remain attentive to U.S.-Iran talks, the Strait of Hormuz and oil-supply risk, but that signs of negotiation progress have helped support global equities.
All three major U.S. indexes closed higher in a volatile session on Thursday, with the Dow posting its highest-ever closing level. Treasury yields moderated on Friday after a recent spike; the yield on the 10-year U.S. note fell 2.2 basis points to 4.56%.
At 04:55 a.m. ET, Dow E-minis were up 151 points, or 0.3%, S&P 500 E-minis added 23 points, or 0.31%, and Nasdaq 100 E-minis gained 148 points, or 0.5%. Premarket trading showed most megacap and growth stocks trading higher.
Nvidia inched up 0.7% in early trading, following a 1.7% decline the previous day despite the company issuing a robust quarterly forecast. Semiconductor suppliers broadly climbed, a category that has been a key driver of recent Wall Street performance. Intel, AMD, Marvell Technology and Broadcom each advanced, with gains ranging from 0.9% to 3.2% in premarket activity.
Several individual stocks posted notable moves after company-specific news. Workday jumped 11.1% after reporting first-quarter revenue and profit that exceeded expectations. Take-Two Interactive added 5% after reiterating the November 19 launch date for the highly anticipated Grand Theft Auto VI title. Estée Lauder surged 10.1% after the cosmetics maker and Spanish perfumery Puig ended merger discussions.
Separately, the Trump administration said President Donald Trump will swear in Kevin Warsh as Federal Reserve chair late in the day at the White House. Market participants were also awaiting a final reading of May U.S. consumer sentiment due later in the day.
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Market context and implications
The combination of falling yields and renewed appetite for growth and technology names has underpinned the gains in futures markets. At the same time, discussions around the Middle East conflict and oil-supply risk continue to act as a moderating factor on sentiment, keeping the recovery trajectory uneven across regions.