U.S. stock index futures edged lower on Wednesday evening after a session in which optimism about a possible peace arrangement with Iran helped lift major Wall Street averages to new records.
Chipmakers were among the principal contributors to the earlier gains, driven by a strong quarterly report from Advanced Micro Devices that heightened expectations for artificial intelligence-driven demand across the semiconductor sector.
Futures snapshot
- S&P 500 Futures fell 0.1% to 7,379.75 points by 19:30 ET (23:30 GMT).
- Nasdaq 100 Futures were down 0.15% at 28,672.75 points.
- Dow Jones Futures slipped 0.1% to 49,991.0 points.
Signs that hostilities between the U.S. and Iran may be abating were cited as a key factor supporting the rally earlier in the day. Media reports indicated the White House believed it was near a deal with Iran to end the war, and that more detailed discussions on Tehran’s nuclear activities were likely to follow. Alongside those reports, President Donald Trump delivered a positive message about the prospects for ending the conflict and at one point paused a military operation aimed at reopening the Strait of Hormuz to commercial shipping.
Those developments pushed oil prices sharply lower and lifted risk-sensitive assets. Equities benefited as investors rotated into sectors that stand to gain from lower energy-related uncertainty.
Semiconductor strength
Chip stocks also provided substantial momentum. AMD reported blockbuster first-quarter results and flagged a favorable outlook for the industry, attributing a portion of its strength to AI-driven demand for servers and data-center equipment. Shares of AMD (NASDAQ:AMD) surged by nearly 19% on Wednesday, while the Philadelphia Semiconductor Index jumped 4.5% to a record high.
Those moves helped the technology-heavy NASDAQ Composite to lead Wednesday’s advances, finishing the session up 2% at a record 25,838.94 points. The S&P 500 rose 1.5% to a record 7,365.03 points, and the Dow Jones Industrial Average gained 1.2% to 49,910.59 points.
Upcoming catalysts
The first-quarter earnings calendar remains active over the coming days. McDonald’s Corporation (NYSE:MCD) and Gilead Sciences Inc (NASDAQ:GILD) were scheduled to report results on Thursday. Also set to release quarterly numbers on Thursday were Airbnb Inc (NASDAQ:ABNB), McKesson Corporation (NYSE:MCK), Motorola Solutions Inc (NYSE:MSI), and Howmet Aerospace Inc (BMV:HWM), rounding out what the market has viewed as a largely positive Q1 reporting season so far.
Beyond corporate updates, attention will turn to key economic data later in the week. The U.S. nonfarm payrolls report for April is due on Friday and is expected to influence the outlook for interest-rate policy.
Market context
For now, the small pullback in futures after the session’s record highs suggests investors are pausing to assess how persistent the drivers behind the rally might be - namely, diplomatic signals regarding Iran and stronger-than-expected demand in semiconductors tied to AI infrastructure.
Note: This article reports market moves, corporate earnings reports and scheduled economic releases based on available information through the close of trading and into after-hours futures.