U.S. stock futures surged early Thursday as investors responded to a diplomatic agreement between Washington and Tehran, with the reaction outweighing hawkish signals from the Federal Reserve. The U.S. and Iran signed a 14-point Memorandum of Understanding ahead of schedule, establishing a 60-day negotiating window to reach a broader peace agreement and including provisions to reopen the Strait of Hormuz. At the Federal Reserve's latest meeting, the first under Chair Kevin Warsh, the central bank held rates steady but indicated that at least one interest rate hike is back on the table for 2026, with Warsh stating that combating inflation was the Fed's top priority and raising the year-end core inflation projection to 3.3%.
U.S.-Iran Agreement Drives Futures Rally
As of 4:00 a.m. ET, Nasdaq futures rose 1.4%, S&P 500 futures rose 0.9%, Dow futures gained 0.5%, and Russell 2000 futures gained 1.2%. The U.S. and Iran signed the 14-point Memorandum of Understanding, which gives them a 60-day negotiating window to reach a broader peace agreement. The agreement includes provisions to reopen the critical Strait of Hormuz.
On Stocktwits, retail sentiment for the SPDR S&P 500 ETF (SPY) remained 'bullish', and the Invesco QQQ Trust (QQQ) ETF improved to 'bullish' from 'neutral' a day ago.
Federal Reserve Signals Potential 2026 Rate Hike
At the Federal Reserve's latest meeting, the first under Chair Kevin Warsh, the central bank held rates steady but indicated that at least one interest rate hike is back on the table for 2026. Warsh said that combating inflation was the Fed's top priority and raised the year-end core inflation projection to 3.3%.
Barclays responded by revising its outlook, saying it now expects the Fed to keep rates unchanged through the end of 2027. Goldman Sachs maintained its base case that policymakers will remain on hold this year, though analyst David Mericle acknowledged the latest meeting increased the risk of future hikes. Principal Asset Management's Seema Shah added that the hurdle for policy easing remains high.
Intel Stock Rises on Apple Chip Manufacturing Agreement
Intel Corp (INTC) stock rose 7% in early premarket trade after President Trump confirmed that Apple has agreed to work with Intel to build chips domestically. Apple (AAPL) is also on the retail radar after CEO Tim Cook reportedly warned that rising AI-driven memory and storage costs will force "unavoidable" price hikes on some products, such as Macs and iPads.
Micron and Memory Stocks Gain on Apple Demand Comments
Micron (MU) and other memory stocks, such as WDC and SNDK, rose between 4% and 6% in early premarket trade, following Apple's comments reiterating robust demand for memory chips.
Additional Stock Movements
Nebius Group NV (NBIS) stock continued its rally ahead of its inclusion in the Nasdaq-100 next week. Alphabet (GOOGL) subsidiary Waymo recalled 3,871 robotaxis in the U.S. after identifying a software issue that could allow vehicles to enter closed freeway construction zones.
SpaceX (SPCX) stock held steady after a selloff in the previous session. Rumble Inc (RUM) stock rose 17% in early premarket trade after finalizing its Northern Data acquisition and announcing an organizational realignment into two core units, renaming its cloud and AI infrastructure business to "Quake AI."
Moderna (MRNA) is under scrutiny today as the pharmaceutical company presents its case for its specialized mRNA influenza vaccine before a key U.S. FDA advisory committee.
Aditxt (ADTX) shares surged nearly 125% in early premarket trade. Retail remains bullish, and chatter suggests that the company has reportedly received a conditional extension to regain compliance with the Nasdaq Listing Rule. A fresh SEC filing showed that institutional player HRT Financial LP, which owned a 10% stake in the company, has sold 2,114,344 shares this week.
Ark Invest Adjusts Coinbase and Robinhood Holdings
Cathie Wood's Ark Invest purchased roughly $18.4 million worth of Coinbase (COIN) shares while trimming approximately $29 million in Robinhood (HOOD) stock on Wednesday.
HIVE Digital Technologies (HIVE) announced plans to acquire a 32-megawatt data center in Sweden. Other tickers trending on Stocktwits at the time of writing included Roundhill ETF (DRAM), Wolfspeed (WOLF), Alibaba Group (BABA), and Nio Inc (NIO).
Economic Calendar and Earnings Reports
On the economic front, investors are tracking the release of the initial jobless claims and the Philadelphia Fed Manufacturing Index today. On earnings radar, watch out for quarterly reports from Accenture (ACN) and Kroger (KR).
FAQ
What did the U.S. and Iran agree to in their recent memorandum?
The U.S. and Iran signed a 14-point Memorandum of Understanding that establishes a 60-day negotiating window to reach a broader peace agreement. The agreement includes provisions to reopen the critical Strait of Hormuz.
What did the Federal Reserve indicate about future interest rates?
At the Federal Reserve's latest meeting, the first under Chair Kevin Warsh, the central bank held rates steady but indicated that at least one interest rate hike is back on the table for 2026. Warsh raised the year-end core inflation projection to 3.3% and stated that combating inflation was the Fed's top priority.
How did U.S. stock futures respond to the U.S.-Iran agreement?
As of 4:00 a.m. ET, Nasdaq futures rose 1.4%, S&P 500 futures rose 0.9%, Dow futures gained 0.5%, and Russell 2000 futures gained 1.2% as investors welcomed the diplomatic breakthrough between Washington and Tehran.
