U.S. stock futures pointed to another positive start on Wednesday, with investors looking to extend the strong rally that has lifted the Dow Jones Industrial Average and the S&P 500 to fresh record highs in recent sessions.
Market sentiment continues to be supported by easing energy prices and optimism that negotiations to reopen the Strait of Hormuz could soon produce an agreement.
Falling oil prices continue to support equities
The recent advance on Wall Street has been driven in large part by the sharp decline in crude oil prices, which have fallen by more than 10% over the previous two trading sessions.
Although oil prices recovered modestly during Wednesday’s trading, investors remained encouraged by reports that diplomatic efforts involving the United States and Iran are moving closer to an agreement that would restore shipping through the strategic waterway.
Disney leads pre-market gains
Among individual stocks, Disney (NYSE:DIS) was one of the strongest performers before the opening bell, with shares rising more than 3% after the entertainment company reported fiscal third-quarter earnings that exceeded market expectations.
The upbeat results provided another boost to investor confidence following a series of encouraging corporate earnings releases.
Wall Street extends record-breaking run
Tuesday’s session saw another broad-based rally across U.S. equities, with all three major indexes posting strong gains.
The Dow Jones Industrial Average climbed 907.47 points, or 1.7%, to finish at a record 54,085.88.
The Nasdaq Composite advanced 671.10 points, or 2.6%, to close at 26,584.99, while the S&P 500 gained 136.02 points, or 1.8%, ending the session at a record 7,736.52.
Although the major indexes eased back from their intraday highs before the close, buying momentum remained firmly intact.
Oil slump and Palantir earnings fuel optimism
Investor sentiment was further strengthened by another sharp decline in oil prices. U.S. crude futures dropped 5.7% on Tuesday after also falling by more than 5% during Monday’s session.
Oil initially traded higher before reversing course after U.S. Treasury Secretary Scott Bessent said Washington and Tehran could reach an agreement to reopen the Strait of Hormuz within days.
Technology stocks also outperformed following another strong earnings report from Palantir (NASDAQ:PLTR).
The data analytics company surged nearly 30% after reporting better-than-expected second-quarter results and raising its full-year guidance.