US stock futures rose on Thursday as investors moved back into beaten-down technology shares and took some comfort from signs that Washington and Tehran were still exchanging messages on a possible peace framework.
The rebound followed a bruising Wall Street session in which major indexes fell more than 1% and tech stocks slipped into correction territory.
Chipmakers led the premarket recovery, while easing oil prices helped cool some fears over inflation.
5 things to know before Wall Street opens
1. Futures point to a stronger open
US equity futures traded higher before the opening bell, suggesting investors were willing to buy into the previous day’s weakness.
S&P 500 futures rose 0.72%, while Nasdaq 100 futures advanced 1.2%. Dow Jones Industrial Average futures gained 378 points, or 0.75%.
The Nasdaq outperformed as traders returned to technology shares after a sharp pullback.
The S&P 500 is still down about 4% from its record closing high in early June, reflecting concern that valuations, especially in technology, had moved too far too quickly.
2. Chip stocks lead the rebound
Semiconductor names recovered in premarket trading after Wednesday’s selloff pushed parts of the technology sector into correction territory.
NVIDIA, Intel, and Micron Technology rose between 1.2% and 4.7%, helping lift Nasdaq futures.
The rebound suggests investors are still willing to back the artificial intelligence trade, even as concerns grow over the cost of building the infrastructure needed to support it.
Still, the sector remains under scrutiny. Elevated valuations mean chip stocks may be more sensitive to inflation data, bond yields and corporate spending plans than the wider market.
3. Iran talks help ease oil fears
Markets also drew support from signs of progress in US-Iran diplomacy, even as both sides continued to exchange attacks.
Three Iranian sources and a European official said the two countries were discussing details of a memorandum after reaching a political understanding, though some issues still required further negotiation.
Expectations that talks on reopening the Strait of Hormuz remained on track helped push oil prices lower.
That matters for equities because any sustained surge in crude could worsen inflation and keep pressure on central banks to stay hawkish.
4. Inflation data returns to centre stage
Investors are waiting for the US Producer Price Index and weekly jobless claims, both due at 8:30 am ET.
The data will be closely watched after Wednesday’s consumer inflation report showed prices rising at the fastest pace in three years in May, partly because of higher energy costs linked to the Middle East conflict.
A stronger PPI reading could revive concerns that inflation is becoming harder to contain and make it more difficult for the Fed to signal any policy relief. A softer number, however, could support the rebound in risk assets.
5. Oracle slides while Navan jumps
Among individual movers, Oracle shares fell 7% after the company projected fiscal 2027 capital spending above Wall Street estimates.
The update underlined how much cash large technology firms may need to pour into AI infrastructure.
Navan moved in the opposite direction.
Shares jumped 17.6% after the corporate travel booking company raised its full-year revenue and operating income forecasts, citing stronger business travel demand and growth among enterprise customers.
Investors are also watching the expected Friday market debut of Elon Musk’s SpaceX, which is set to be valued at $1.75 trillion and could test appetite for richly valued growth assets.
This post Dow futures surge 370 points: 5 things to know before market opens may be modified as updates unfold
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