US-Iran Deal Hopes Boost Markets as Oil Prices Retreat
US stock index futures rose modestly in premarket trading Friday as investors reassessed geopolitical factors affecting oil prices and bond yields. The key catalyst was a proposed deal between the US and Iran, with Iranian Foreign Minister Abbas Araghchi suggesting that Tehran would reopen the Strait of Hormuz within seven days and restart nuclear negotiations if Washington accepts its conditions.
According to reports, US and Iranian negotiators are exploring a phased agreement in New York aimed at gradually ending the Middle East conflict. This development put pressure on crude oil prices, with WTI futures falling to $92 per barrel and Brent crude trading near $105 per barrel.
The easing of tensions also boosted tech stocks, particularly those involved in artificial intelligence. Meta shares surged nearly 17% this week, driven by its AI assistant Muse. Google announced plans to test its TPU chips in space environments, while SpaceX CEO Elon Musk said GPU usage at his Colossus 2 data center would more than double by year-end.
Additionally, AI chip startup DensityAI is reportedly raising several hundred million dollars at a post-money valuation near $10 billion. The company has presented investors with an agreement that if its chips meet specified performance benchmarks, Amazon Web Services (AWS) will purchase them.