US stocks are rising with S&P 500 and Nasdaq futures trading at or around record highs as oil prices fall further on hopes that the US and Iran could soon agree on a deal that would normalise crude supplies. According to reports from Investing.com India, the S&P 500 has climbed to a fresh record high of 7,384, extending its recovery from the June 30, 2026 low. Oil prices have dropped below $100 a barrel, easing inflation concerns and supporting risk appetite across equity markets.
The US and Iran are reportedly moving towards a limited agreement to halt the conflict, which could reopen the Strait of Hormuz. As reported by Investing.com India, markets are watching closely for Tehran's response to the proposal, with investors increasingly pricing in a de-escalation scenario that could reduce geopolitical risk premiums across energy markets. If a deal materialises, oil prices could fall further as supply concerns ease and war-related premiums evaporate.
US jobless claims rose to 200,000 from 190,000 the previous week, according to Investing.com India. However, the increase remains consistent with a historically resilient labour market. The data follows yesterday's ADP employment report, which showed US private payrolls rose by 109,000 in April, marking the strongest increase in 15 months. Economists expect 60,000 jobs to have been added in April in tomorrow's non-farm payroll report, down sharply from 178,000 in March.
Snap is tumbling 9% after Q1 advertising revenue was hit by the conflict in the Middle East and slowing growth in the US advertising market. Shake Shack is falling 17% pre-market after Q1 results missed expectations and the company posted an operating loss of $2.6 million. However, McDonald's is rising more than 3% after reporting stronger-than-expected earnings with EPS at $2.83 versus forecasts of $2.74. Shell has gained 1.8% after posting stronger-than-expected Q1 profits.
The S&P 500's RSI remains deep in overbought territory, suggesting that some consolidation or a short-term pullback could emerge before the next leg higher. According to Investing.com India, immediate support can be seen around 7,300 where the rising trendline converges with the psychological round number. On the upside, buyers will look to extend gains towards 7,400 and then 7,500 as the next logical resistance targets. The US dollar is falling further amid growing hopes that a Middle East agreement could soon be reached, with the greenback trading around a two-week low.
