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US stock futures traded flat as Wall Street weighed the promise of the AI trade against fragile US-Iran negotiations.
Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) hugged the flat line. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) edged up 0.1%.
Palo Alto Networks’ (PANW) stock rose after its earnings, released after the market closed on Tuesday, signaled strong demand for AI cybersecurity.
Wall Street has cheered a number of strong earnings reports lately, including from Dell (DELL) and HPE (HPE), which have shown AI significantly boosting business. That backdrop helped lift stocks to fresh records on Tuesday, even as US talks with Iran continue with no clear end in sight.
Earlier this week, as doubts were circulating that US-Iran negotiations were on ice, President Trump took to social media to reassure that they were continuing “at a rapid pace.” Now, however, Israel’s military campaign against Hezbollah in Lebanon has become a new hurdle to reaching a lasting deal to end the war and open the Strait of Hormuz.
On Wednesday, earnings season continues to wrap up, with Broadcom (AVGO), CrowdStrike Holdings (CRWD), and Macy’s Inc. (M) set to report their results.
Investors will also receive ADP employment data on Wednesday in the run-up to Friday’s release of the May jobs report.
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Oil holds gains as Israeli attacks on Lebanon upset US-Iran peace talks
Bloomberg reports:
Oil rose a third day, as contradictory headlines on the prospects of a US-Iran peace deal boosted price swings.
West Texas Intermediate (CL=F) climbed above $95 a barrel, after adding more than 7% in the prior two sessions, while Brent (BZ=F) closed at $96 on Tuesday. President Donald Trump said he’s still optimistic the US can reach an interim peace deal soon — disputing reports in Iranian state media that talks with Washington had been suspended over the fighting in Lebanon — adding that the two sides have been “continuously” having conversations.
Trump wants Iran to put specific nuclear concessions in writing as part of a preliminary agreement to end the war, ABC News reported, citing people familiar with the matter. Tehran had earlier given verbal assurances that it would agree to certain terms related to their nuclear program, according to the report.
Another key sticking point in the peace talks is Israel’s determination to continue military strikes against Hezbollah that could derail US objectives. Tehran insisted that Lebanon must be part of any peace agreement amid days of deepening Israeli military escalation in the country and a threat to bomb Beirut, the capital.
