S&P 500 futures rose 0.3% on Friday as oil prices fell and Intel shares surged 27% in premarket trading on strong quarterly earnings.
Nasdaq 100 futures gained 1.2%, while Dow Jones Industrial Average futures slipped 45 points, or 0.1%.
U.S. West Texas Intermediate crude futures dropped 1% to trade above $94 per barrel, and Brent crude futures slipped 0.7% to trade above $104 a barrel after reports that Iranian Foreign Minister Abbas Araqchi would arrive in Islamabad for potential U.S.-Iran talks.
The oil price decline followed a Reuters report citing a government source that negotiations between the U.S. And Iran were likely to occur in Pakistan.
Intel’s shares jumped after the company reported first-quarter earnings that beat Wall Street forecasts and issued an upbeat outlook for the current quarter.
For more on this story, see Asia Stocks Plunge & US Futures Fall Amid Middle East Tensions | Oil Rises.
The rally in Intel added to a broader semiconductor rally, with the iShares Semiconductor ETF (SOXX) posting its 17th consecutive positive session and on track for a 6% weekly gain.
Despite Friday’s futures gains, the S&P 500 is on track for a 0.3% weekly decline, the Dow for a similar drop, and the Nasdaq for a 0.1% weekly loss.
Cameron Dawson, chief investment officer at NewEdge Wealth, said market leadership remains narrow, driven largely by semiconductors while other sectors lag.
This follows our earlier report, US Stock Futures Flat as S&P 500 Nears All-Time High.
She noted the market has shifted from broad gains across the “Mag Seven” to a concentration in cyclical tech, specifically semiconductors experiencing supernormal growth.
Why did oil prices fall despite ongoing Middle East tensions?
Oil prices declined after reports signaled a potential diplomatic opening between the U.S. And Iran, reducing immediate fears of supply disruption in the Strait of Hormuz.
What is driving the semiconductor stock rally?
The semiconductor rally is being led by strong earnings and forward guidance from companies like Intel, which beat estimates and raised its quarterly outlook.
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