U.S. stock futures rise further amid Middle East hopes

S&P 500 Futures gained 0.4% to 7,796.25 points, Nasdaq 100 Futures added 0.35% to 29,967.25 points, while Dow Jones Futures increased 0.3% to 54,416.0 points

U.S. stock index futures rose further early-Wednesday amid growing hopes that a deal to reopen the Strait of Hormuz was close.

But overall optimism was limited by aftermarket declines in SpaceX and AMD, as quarterly earnings from both companies failed to impress. SpaceX also flagged higher spending on artificial intelligence infrastructure.

S&P 500 Futures gained 0.4% to 7,796.25 points by 07:04 GMT. Nasdaq 100 Futures added 0.35% to 29,967.25 points, while Dow Jones Futures increased 0.3% to 54,416.0 points.

Futures extended gains after a record-high session on U.S. stock market amid rebounding technology stocks and declining oil prices.

NVIDIA Corporation was a major aftermarket performer, adding around 2% after SpaceX announced a major chipmaking tieup with the company.

Stock indexes advanced sharply to record highs on Tuesday, aided by investors returning en masse to technology stocks after bruising losses in July.

Risk appetite was boosted by several U.S. officials, including President Donald Trump, asserting that a deal to reopen the Strait of Hormuz was close.

Axios reported that a deal– between the U.S., Oman, and Iran– could be announced as soon as Wednesday.

But Iranian media reported that Tehran saw a potential delay in a Hormuz deal due to continued U.S. threats.

Oil prices dropped sharply this week amid hopes that supplies through West Asia will improve. Hormuz supplied around a fifth of the world’s oil consumption prior to the U.S.-Israel war on Iran.

Sentiment towards tech, specifically chipmaking and AI stocks, was buoyed by some positive earnings from the sector released last week, specifically major AI spenders Microsoft and Amazon.