U.S. stock futures rise as Iran talks show slight progress

U.S. stock futures moved higher Friday as investors bet that a small step forward in Iran talks could ease one of the market’s most disruptive geopolitical risks. The Dow Jones Industrial Average also hit an intraday record above 50,700, its first since the U.S.-Iran war began, as traders poured back into risk assets ahead of a long weekend.

The advance reflected a market trading on two tracks at once: diplomacy and earnings. Shares had been supported this month by hopes of an Iran settlement, optimism around artificial intelligence spending and strong corporate profit growth, while Treasury yields eased Friday and helped megacaps and chip stocks. The S&P 500 and Nasdaq Composite also moved higher as investors looked past war headlines and into the resilience of U.S. earnings.

The main sticking points remained unchanged. Tehran and Washington were still far apart on Iran’s uranium stockpile and on control of the Strait of Hormuz, the chokepoint that carries a large share of global oil shipments. That made the day’s rally feel conditional rather than conclusive, with traders willing to buy risk only as long as the diplomacy held together and energy markets stayed calm.

Secretary of State Marco Rubio added to that cautious optimism, saying there had been “slight progress” in the talks. He also rejected Iran’s reported effort to impose a “tolling system” in the Strait of Hormuz, calling it “not acceptable.” Reuters and AP have reported that President Donald Trump has held off on military action while negotiations continue, even as he warned that the ceasefire could collapse if no agreement is reached.

The intraday peak in the Dow underscored how quickly market sentiment has shifted since the conflict began in late February. Reuters said the blue-chip index’s previous intraday record was 50,512.79 on February 10. That the Dow was able to move through that level again, even briefly, showed how much traders are now looking for any signal that the war may not escalate further. The bet is clear: if talks keep advancing, the rally can extend. If they fail and oil or shipping routes are jolted again, the market’s calm could evaporate just as fast.