Wall Street Sees New Gains as Oil Prices Drop Amid Iran Deal Hopes

Wall Street indices are pointing towards another positive day ahead of the earnings session, thanks to a renewed decline in oil prices. The hopes of a deal between Iran and the US have resurfaced, leading to a drop in WTI crude prices by 4.2% to $76.90 a barrel.

This development has eased fears of an energy shock that could reignite inflation and force the Federal Reserve to reconsider its policy outlook. Market analyst Kenny Polcari at Slatestone Wealth attributed the rally this week to positive tech earnings combined with easing geopolitical tensions lowering oil prices.

The S&P 500 futures are up 0.2%, putting them on course for a new record high, while Dow Jones and Nasdaq futures are also higher. Palantir shares have surged by 15% in premarket trading after reporting profits well ahead of expectations, with commercial revenue expected to grow 134% this year.

Caterpillar shares have also increased by over 10% in pre-market trading after it reported profits above estimates due to AI demand boosting sales at its power-generation business. The market will be watching closely today's earnings from Merck, McDonald's, Pfizer, BP, and others.