Earlier in the premarket session, futures linked to the S&P 500 and Nasdaq 100 gained 0.2% and 0.1%, respectively, while Dow futures advanced 0.3%, as investors tracked developments around the ongoing US-Iran conflict.
Investor sentiment improved after reports suggested Iran was reviewing a US-backed peace proposal aimed at ending the nearly 10-week-long war. According to CNN, Tehran is expected to respond as early as Thursday.
Signs of progress toward reopening the Strait of Hormuz also weighed on oil prices, with Brent crude slipping below the $100-per-barrel mark. The easing crude prices helped calm inflation concerns and boosted appetite for risk assets.
The broader market rally was further supported by continued momentum in the AI-driven tech trade, as earnings from major companies remained resilient.
Chip designer Arm initially gained after issuing a strong revenue forecast but later slipped in premarket trading amid concerns over chip supply constraints.
Meanwhile, McDonald’s shares moved higher after the fast-food giant posted better-than-expected first-quarter earnings, driven by consumers increasingly seeking value offerings amid economic uncertainty.
The earnings-heavy week continues with companies such as Shake Shack and Papa John’s slated to report before markets open.
On the macroeconomic front, investors also assessed fresh labour market data ahead of Friday’s closely watched monthly jobs report.
A Challenger report released Thursday showed layoffs rose in April, with the tech sector seeing the biggest impact as companies increasingly cited AI-related restructuring. However, weekly jobless claims came in lower than expected, offering some relief around the health of the US labour market.
First Published: May 7, 2026 7:20 PM IST
