U.S. stock futures point to a slightly higher open on Thursday, suggesting equities could build on the strong rally seen in recent sessions.
Markets appear poised to carry forward the positive momentum that pushed both the Nasdaq and S&P 500 to record closing highs on Wednesday.
Investors remain hopeful about a potential second round of negotiations between the United States and Iran, although no official meeting has yet been confirmed.
Reports indicate the two sides are weighing a two-week extension of the current ceasefire to create more room for diplomatic discussions.
“It’s like the events of the past month-and-a-half have been placed in the rearview mirror by investors,” said Dan Coatsworth, head of markets at AJ Bell.
He added, “The market’s sanguine perspective may be tested if the rhetoric about an end to the fighting isn’t matched by reality sooner rather than later.”
Futures moved modestly higher after the Labor Department released data showing initial jobless claims in the U.S. declined more than expected in the week ending April 11.
Following the early-week rally, stocks continued their upward trajectory on Wednesday, with both the Nasdaq and S&P 500 finishing at fresh record highs.
The Nasdaq climbed 376.93 points, or 1.6%, to 24,016.02, while the S&P 500 gained 55.57 points, or 0.8%, to close at 7,022.95. In contrast, the Dow Jones Industrial Average slipped 72.27 points, or 0.2%, to 48,463.72.
The Nasdaq’s strong performance was driven in part by gains in technology stocks, with Broadcom (NASDAQ:AVGO) leading the sector higher.
Shares of Broadcom (NASDAQ:AVGO) jumped 4.2% after the company unveiled a multi-year, multi-generation partnership aimed at supporting Meta (NASDAQ:META) in scaling its artificial intelligence infrastructure.
Meanwhile, the Dow’s decline was partly due to a sharp drop in Caterpillar (NYSE:CAT), with the construction equipment maker falling 3.0%.
Traders continued to express confidence that tensions in the Middle East could ease, even as they await further clarity on upcoming U.S.-Iran talks.
In an interview with Fox Business, President Donald Trump said the conflict is “very close to over” and repeated his view that Iran is eager to strike a deal “very badly.”
Trump also forecast that the “stock market is going to boom” once the conflict involving the U.S., Israel and Iran comes to an end.
Software stocks posted strong gains, with the Dow Jones U.S. Software Index surging 4.6%.
Brokerage firms also performed well, reflected in a 1.9% rise in the NYSE Arca Broker/Dealer Index.
On the downside, gold-related stocks declined sharply as bullion prices fell, pulling the NYSE Arca Gold Bugs Index down by 3.1%.
Housing stocks also came under pressure following data showing a larger-than-expected drop in homebuilder confidence, with the Philadelphia Housing Sector Index falling 2.0%.