Dow Futures Surge as Iran Deal Progress Hammers Oil Prices and AMD Soars
Wall Street futures surged sharply Wednesday morning after CNBC reported that progress toward a U.S.-Iran deal was sending oil prices into freefall and lifting risk appetite across equity markets. Dow futures climbed more than 500 points, a gain of roughly 1%. S&P 500 futures rose 0.9% and Nasdaq 100 futures jumped 1.5%, extending the prior session’s strong closes.
Iran Deal Hopes Drive the Early Rally
An Axios report citing sources said Washington and Tehran were converging on a one-page framework. The agreement would reportedly include a moratorium on nuclear enrichment and create a structure for more detailed follow-on negotiations. An Iranian foreign ministry spokesperson separately told CNBC that Tehran was reviewing a U.S. proposal toward resolution.
Futures pared gains after President Donald Trump injected caution. Writing on Truth Social, Trump described Iran’s agreement as a “perhaps, a big assumption.” He also warned that if talks collapsed, military action would resume at a “much higher level and intensity.” The comment briefly knocked equity futures off their session peaks.
Oil Prices Absorb the Biggest Blow
Iran deal optimism hit energy markets hard. West Texas Intermediate futures fell around 10%, trading above $91 per barrel. International Brent crude dropped roughly 9% to near $100. Lower oil prices reduce input costs across the economy, broadly supportive of corporate margins.
Trump also announced late Tuesday that he was suspending “Project Freedom,” the U.S. initiative to escort commercial ships through the Strait of Hormuz. He credited significant progress in ceasefire talks as the reason behind the pause.
AMD Lights Up the Chipmaker Sector
Advanced Micro Devices delivered a standout premarket performance, surging 18% after the company topped analyst forecasts on both revenue and earnings in the first quarter. Its second-quarter guidance also exceeded expectations. The result rippled through the broader semiconductor sector. The VanEck Semiconductor ETF climbed 3%, while Intel added 4%.
Background: Markets Climbing a Wall of Worry
Tuesday’s session already delivered solid gains. Strong corporate earnings and a continuing ceasefire between the U.S. and Iran underpinned the move higher. Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, told CNBC that the AI earnings trade was acting as a meaningful cushion for S&P 500 profit forecasts. She described markets as “climbing a wall of worry” without yet appearing overheated.
Separately, ADP reported that private payrolls grew by 109,000 in April, above the 84,000 consensus estimate. That resilience may reduce pressure on the Federal Reserve to cut rates anytime soon.
