US stock market today: S&P 500, Nasdaq set to extend record run as investors eye US-Iran peace deal updates

After closing at fresh record highs in the previous trade, the US stock market's key indices eyed another positive start on Friday, 29 May. Investors' appetite has improved over the last few trades on the back of strong AI-led earnings growth and hopes of a resolution to the nearly three-month-long Middle East war between the US and Iran.

Investors are now awaiting details of the peace deal between the US and Iran, which has sent crude oil prices lower this week. According to a Reuters report, Washington and Tehran had agreed to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, but President Donald Trump had yet to approve it.

The US Secretary of State Marco Rubio is set to meet Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar in Washington on Friday, amidst the ongoing US-Iran deal. Pakistan is currently acting as a mediator in the ongoing talks between the US and Iran.

The meeting comes as US Vice President JD Vance said Washington is “very close” to securing a broader strategic agreement in West Asia. He said recent US actions are expected to help reopen the Strait of Hormuz, weaken Iran’s conventional military capabilities and significantly delay Tehran’s nuclear programme.

The Dow e-mini futures were trading 0.21% higher as of 6.05 GMT. The S&P 500 e-minis were higher by 0.13%, and the Nasdaq 100 e-mini futures added 0.17%.

In the last trading session, the S&P 500 and the Nasdaq posted record closing highs. The indices have been on a record run despite the inflationary concerns around the US-Iran war as investors focused on the renewed optimism around AI and strong earnings growth.

As per data from Reuters, the S&P 500 was on track for a ninth consecutive weekly gain, its longest winning streak since December 2023. The Dow Jones and the Nasdaq were also set to end the week higher, with all three indices set for a second straight month of gains.

Oil prices ease

Oil futures fell nearly 2% and were on track for their steepest weekly decline since early April amid ceasefire reports. Brent crude futures for July declined 1.77% to $92.05 a barrel. The more active August contract was down 1.76% at $91.07. WTI US oil futures were down 1.74%, at $87.35.

For the week, Brent benchmark has plunged by about 11%, and WTI has dropped by nearly 10%.

This comes as a positive development after the US inflation print rose at its fastest pace in three years in April, while US GDP for the first quarter was revised lower to a 1.6% annual rise. Money markets expect the Federal Reserve to keep interest rates steady for the rest of the year, with some expectations of a 25 bps hike in December.

Among specific stocks, Dell surged 37.8% before the bell, after raising its full-year profit and revenue forecasts. Peers Hewlett Packard Enterprise and Super Micro Computer gained 18% and 10.4%, respectively.

(With inputs from Reuters)