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Wall St futures gain on US-Iran peace talk hopes
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Wall St futures gain on US-Iran peace talk hopes
May 26, 2026 3:01 AM

May 26 (Reuters) - U.S. stock index futures rose to record highs on Tuesday, as investors remained optimistic about Middle East peace negotiations despite recent strikes, while AI-led gains in chip stocks boosted sentiment.

U.S. Secretary of State Marco Rubio said on Tuesday that negotiating the deal with Iran could "take a few days," while President Donald Trump said on a Truth Social post on Monday that talks with Iran were going "nicely."

Brent crude oil rose as much as 3% and global stocks wavered as uncertainty lingered over whether a deal will be reached to open up shipping flows through the Strait of Hormuz.

"Investors still appear willing to buy dips on the assumption that the conflict ultimately de-escalates," said Daniela Hathorn, senior market analyst at Capital.com.

At 04:50 a.m. ET, Dow E-minis were up 244 points, or 0.48%, S&P 500 E-minis were up 38.75 points, or 0.52%, and Nasdaq 100 E-minis were up 228.25 points, or 0.77%. U.S. markets were closed on Monday for the Memorial Day holiday.

Semiconductor stocks, which have surged on AI-driven demand, led gains. Marvell Technology ( MRVL ) rose 5.7%, while Micron and Intel ( INTC ) added about 2% each in premarket trading.

Wall Street has been trading at record highs with upbeat earnings and confidence in AI trade driving equities higher despite the ongoing conflict with Iran.

The blue-chip Dow became the last index to hit a record high on Friday, its first since the Iran war began, while the S&P 500 posted its best winning streak since December 2023.

With the earnings season nearly over, first-quarter earnings growth is expected to be 29% year-on-year compared to the 16.1% estimated a month ago, according to LSEG data from Friday.

Kevin Warsh was sworn in as chair of the Federal Reserve on Friday. His appointment comes amid growing concerns about inflation, driven by higher oil prices, which have added to expectations of tighter global monetary policy.

Markets currently expect the Fed to keep rates on hold for the rest of the year, with a 25 bps rate hike seen in December.

U.S. consumer confidence data for May is expected later in the day, with higher gasoline prices due to the Middle East conflict expected to weigh on consumer sentiment.

Among early movers, Joyy jumped 12.3% after the Chinese social live-streaming platform posted first-quarter revenue above expectations.

(Reporting by Twesha Dikshit in Bengaluru; Editing by Shinjini Ganguli)

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