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S&P 500, Nasdaq futures hit records as oil extends losses
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S&P 500, Nasdaq futures hit records as oil extends losses
May 7, 2026 3:59 AM

May 7 (Reuters) - S&P 500 and Nasdaq futures hovered near all-time highs on Thursday as oil prices retreated further on hopes of a U.S.-Iran peace deal that could potentially normalize crude supplies through the Strait of Hormuz.

The United States and Iran are edging toward a limited, temporary agreement to halt their war, sources and officials said, with hopes that a deal could lead to the reopening of the Strait, lifting global stocks to record peaks while oil prices fall deeper below $100 a barrel.

Tehran is now expected to respond to the peace proposals.

At 6:05 a.m. ET, Dow E-minis fell 11 points, or 0.02%, S&P 500 E-minis rose 2 points, or 0.03%, and Nasdaq 100 E-minis lost 3.25 points, or 0.01%.

A relentless rally in technology and AI names has also played a big role in pushing U.S. stocks to fresh highs as investors cheered a strong earnings season and upbeat economic data.

U.S. private payrolls rose by 109,000 jobs in April, their largest increase in 15 months, data on Wednesday showed, pointing to continued labor market stability despite elevated global tensions.

Weekly jobless claims numbers are due at 8:30 a.m. ET. Investors are awaiting the more comprehensive nonfarm payrolls report on Friday, with jobs seen increasing by 62,000 in April after rebounding 178,000 in March, according to a Reuters poll of economists.

Traders continued to bet the U.S. Federal Reserve will hold interest rates through the end of the year due to signs of a resilient labor market and elevated energy prices. That is a stark shift from several rate cuts investors priced in before the war.

Fed presidents Neel Kashkari of Minneapolis and Beth Hammack of Cleveland as well as New York head John Williams - all voting members of the interest rate-setting committee this year - are scheduled to speak later in the day.

Among early movers, Snap tumbled 10% in premarket trading after the Snapchat parent said its first-quarter advertising revenue was impacted by the conflict in the Middle East and slowing growth in North America.

Whirlpool slumped 16.6% after the home appliance maker missed analysts' estimates for first-quarter sales and suspended its dividend.

U.S.-listed shares of Arm Holdings, which licenses technology to semiconductor designers, dropped 7.3% despite forecasting first-quarter revenue above Wall Street expectations. Its shares have surged about 117% so far this year.

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