Diplomatic progress with Iran and easing AI export concerns lift futures, offsetting earlier declines tied to geopolitical risks.
U.S. stock index futures pared earlier losses Monday as diplomatic talks between Iran and the U.S. showed signs of progress, reducing fears of renewed Middle East tensions. Futures tied to the S&P 500 and Dow Jones Industrial Average were down 0.06% by 07:33 GMT, while Nasdaq 100 futures rose 0.16%, recovering from sharper declines earlier in the session.
The shift followed President Donald Trump’s warning of potential military action, which initially weighed on sentiment. However, Iranian officials and mediators later struck a more constructive tone after talks in Switzerland, easing investor concerns. Separately, the AI sector gained traction after Trump adopted a less confrontational stance toward Anthropic, reducing uncertainty over export restrictions on advanced AI models.
In the semiconductor space, SK Hynix overtook Samsung Electronics as South Korea’s most valuable listed company, reflecting the growing influence of AI-driven demand. Markets remain focused on whether diplomatic efforts can sustain momentum and prevent further escalation.