US Pre-Market: US and Iran Near Deal, Oil Prices Tumble, Global Stocks and Precious Metals Rise Together

TradingKey - Major U.S. stock index futures climbed across the board in Wednesday pre-market trading, with Dow Jones futures up 0.89%, Nasdaq 100 futures rising 1.32%, and S&P 500 futures gaining 0.78%.

WTI crude oil futures plummeted more than 13% at one point, while Brent crude fell nearly 11% in tandem; spot gold surged over 3% to break above the $4,700 mark, and silver jumped 6%.

On the news front, reports indicate that the U.S. and Iran are nearing an agreement to end their conflict, instantly igniting market risk appetite as the dollar fell, oil prices slumped, and global equity markets climbed sharply.

Market Volatility

Corning shares surged 13% in U.S. pre-market trading. NVIDIA announced a long-term partnership with Corning to enhance U.S. AI infrastructure manufacturing capabilities. NVIDIA stated that Corning will increase U.S. optical connectivity capacity by 10 times and fiber production by more than 50%.

Crude oil markets plummeted. Brent crude fell below the $97 per barrel mark to $96.86 per barrel; WTI crude dropped 13.0% on the day to $88.82 per barrel. This followed reports that the U.S. and Iran are close to reaching a deal.

European stock gains expanded. The French CAC 40 rose 3%, the German DAX climbed nearly 3%, the Euro Stoxx 50 gained nearly 3%, and the UK's FTSE 100 rose more than 2%.

The yen rose more than 1% against the dollar. Following recent foreign exchange intervention by the Bank of Japan, the dollar fell from the 160 level to 155 against the yen, weighing on the greenback as it softened against other G10 currencies.

AMD shares surged more than 20% at one point in pre-market trading. AMD reported first-quarter revenue of $10.25 billion, up 38% year-over-year; non-GAAP earnings per share were $1.37, up 43%, both exceeding market expectations. The data center segment posted revenue of $5.8 billion, up 57% year-over-year, as the primary performance driver. Second-quarter revenue is projected at $11.2 billion, surpassing the estimated $10.5 billion.

Market Headlines

Two U.S. officials and people familiar with the matter said the U.S. and Iran are nearing an agreement. Sources said this is the closest both sides have come to a deal since the conflict began, establishing a framework for further detailed nuclear negotiations; the U.S. expects to receive Iran's response on several key issues within the next 48 hours.

Iran is currently "evaluating" a ceasefire memorandum of understanding proposed by the U.S. An Iranian Foreign Ministry spokesperson told CNBC on the 6th that Iran is "evaluating" a 14-point ceasefire memorandum of understanding proposed by the U.S.

Iran stated it will ensure the safe passage of vessels through the Strait of Hormuz. Iranian media reported on the 6th that the Islamic Revolutionary Guard Corps Navy issued a notice stating it would ensure the safe and stable transit of ships through the Strait of Hormuz.

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