By Dow Jones Newswires Staff
U.S. stock futures gained as investors seized on signs that diplomatic efforts to end the U.S.-Iran war are progressing, even as oil prices rebounded.
A technology-led rally in stock markets pushed indexes higher in Asia and Europe after the Dow closed at its record high Thursday--its first in over three months. Yields on government bonds pulled back across the globe on the tentative prospects of a Middle East peace deal.
The situation remains uncertain. Brent crude rose back above $105 a barrel as enthusiasm dimmed, with many market participants doubting the U.S. and Iran will reach an agreement on Hormuz and Tehran's nuclear program.
Traders in U.S. assets will look to position themselves ahead of a long weekend, with markets closed Monday for Memorial Day. On the economic front, European Central Bank President Christine Lagarde is set to speak Friday.
--In early European trading, Brent crude rose 2.5% to $105.19 a barrel, while WTI futures were up 2% to $98.25 a barrel. Both benchmarks have experienced volatility in recent sessions, having settled 2% lower previously. "This is not the first time a deal seemed close, only for negotiations to break down," analysts at ING said. "So, there's a large segment of the market that will be more sceptical about the positive signals we are seeing."
--In the U.S., futures for the S&P 500 and the Dow Jones Industrial Average climbed 0.3%. The tech-heavy Nasdaq was 0.4% higher premarket.
--Asian stocks were higher on Friday as investors moved on from the geopolitical tensions to instead focus on the development of AI. South Korea's Kospi rose 0.4%, ending the week 4.7% higher. Japan's Nikkei Stock Average Index added 2.7% on Friday as SoftBank Group's rally extended. Shares rose 12%--adding to a 20% rise in the previous session--following news that OpenAI, one of its biggest investments, is preparing to file for an initial public offering soon. Hong Kong's Hang Seng Index was last 0.9% up. Shares of Lenovo surged 19% after the world's largest PC maker reported much stronger-than-expected results.
--European blue-chip stock indexes open in the green following gains in Asia and the U.S. Technology stocks surge, boosting the Europe-wide Stoxx 600 to a 0.6% gain. The Dutch AEX is 0.8% higher as the semiconductor stocks that dominate the index track gains for peers in Asia. ASML is up 2.05%. The industrial-heavy German DAX is 0.7% higher after the Dow closed at a fresh record. Analog semiconductor company Infineon gains 3.8%. STMicroelectronics gains 3.6%, helping the French CAC 40 to rise 0.6%. Luxuries also buoy the sector, with sector bellwether LVMH up 1.2%. London's FTSE 100 gains 0.4%. Telecoms group BT gains 2.4%. Italian FTSE MIB is 0.55% higher, while the Spanish IBEX 35 gains 0.5%.
--The dollar traded steady as investors awaited more clarity over the Middle East conflict. President Trump will host the swearing-in of new Federal Reserve Chair Kevin Warsh on Friday. Warsh is unlikely to deliver Trump's desired rate cuts if not warranted by data but he could limit or delay any rate rises, Standard Chartered analysts said in a note. The DXY dollar index traded flat at 99.289.
--Yields on U.S. Treasurys fell. Earlier, markets turned jittery following a report that Iran was insisting on keeping its enriched uranium, but sentiment then improved after reports suggested progress is being made. "Most of the constructive comments are from the U.S. side, while Iran probably sees itself in a better bargaining position," Commerzbank analysts said in a note. The 10-year Treasury yield fell 1.6 basis points to 4.568%. Two-year yields were only slightly lower at 4.083% amid concerns that high inflation could lead the Federal Reserve to increase interest rates.
--Eurozone yields fall by more than their U.S. peers due to a more fragile eurozone economic outlook. Eurozone flash purchasing managers' surveys on Thursday were weak, dampening prospects for a eurozone interest-rate increase as early as June. "European rates have more potential to rally than their U.S. counterparts," ING rates strategists said in a note. The 10-year German Bund yield fell more than 3 basis points to a one-week low of 3.057, Tradeweb data show
--Bitcoin fell 0.4% to $77,310.
--Gold prices held above $4,500 an ounce but remain on track for a weekly loss, pressured by a stronger dollar and fears of higher interest rates. In early European trading, futures in New York fell 0.5% to $4,520.90 a troy ounce and are down 3.5% on the week. "Iran headlines continue to provide an underlying floor, while stronger yields cap rallies," analysts at Sucden Financial said. "The result is a contained, rangebound session where dips attract interest but rallies struggle to extend as the dollar firms."
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
May 22, 2026 04:32 ET (08:32 GMT)
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