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* Futures up: Dow 0.34%, S&P 500 0.19%, Nasdaq 0.11%
April 17 (Reuters) - U.S. stock index futures rose on
Friday, setting the stage for a strong weekly close as
investors embraced renewed optimism over de-escalating tensions
in the Middle East.
Sentiment improved after U.S. President Donald Trump said
Washington could soon secure a peace agreement to end the war
with Iran, while urging the Tehran-backed Hezbollah group to
respect a 10-day truce that had taken effect between Lebanon and
Israel.
The prospect of de-escalation encouraged investors to buy
risk assets, including battered technology and software stocks.
Analysts said a broader risk-on move could persist even without
an immediate peace deal, provided investors remain confident
that a resolution is ultimately within reach.
"A resolution is more likely than not over the coming weeks
even if the path is unlikely to be a straight line," analysts at
Deutsche Bank wrote.
At 5:01 a.m. ET, Dow E-minis jumped 168 points, or
0.34%, U.S. S&P 500 E-minis rose 13.5 points, or 0.19%,
and Nasdaq 100 E-minis were up 28.5 points, or 0.11%.
However, caution around the weekend talks between U.S. and
Iranian officials lingers and any breakdown could reignite
volatility.
Moreover, passage through the Strait of Hormuz remains
disrupted, keeping oil prices nearly 36% above pre-war levels
even as the S&P 500 and the Nasdaq Composite
fully recovered their earlier losses.
With no major economic data scheduled for release on Friday,
investors are likely to focus more on corporate earnings, which
so far this week have pointed to a resilient U.S. consumer.
Notable movers in the premarket session included Netflix ( NFLX )
, which fell 9.3% after forecasting current-quarter
earnings below expectations. The slide comes as co-founder and
longtime chairman Reed Hastings steps down, marking an end to a
29-year tenure.
Alcoa ( AA ) fell 2.3% after the aluminum producer reported
first-quarter profit and revenue below analyst estimates, citing
elevated costs and softening demand.
Central bank commentary will also be in focus, with San
Francisco Fed President Mary Daly, Richmond Fed President Tom
Barkin, and Federal Reserve Governor Christopher Waller
scheduled to speak.
However, recent remarks from Fed officials have had limited
impact on rate expectations.