US pre-open: Futures point to positive open as Middle East tensions die down
US futures were pointing to a positive open on Thursday as the US and Iran both seemingly took steps to avoid further conflict in the Middle East.
As of 1235 GMT, Dow futures were ahead 0.34%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.32% and 0.45% firmer, respectively.
The Dow closed 161.41 points higher on Wednesday despite news that Iran had fired rockets at two Iraqi bases hosting American troops.
As far as Thursday was concerned, market focus will still be largely attuned to geopolitical developments after Donald Trump said late on Wednesday that Tehran was seemingly "standing down" following the attack on the Ain al-Asad airbase in retaliation for the death of Iranian General Qasem Soleimani.
Trump vowed to impose "additional punishing economic sanctions" on the Iranian regime but also indicated that Washington would be open to negotiations with the Islamic Republic.
"We must all work together toward making a deal with Iran that makes the world a safer and more peaceful place," Trump said.
CMC Markets analyst David Madden said: "Stock markets are strong this morning as US-Iran tensions have faded. Yesterday afternoon President Trump issued a statement in relation to Iran, and he made it clear that he wasn't pushing for an all-out war with the regime, which was a weight off traders' minds.
"The strong finish in New York last night prompted buying in Asia overnight, so now the bullish sentiment has reached Europe. The US and Iran are still at odds with each other, but as long as a conflict doesn't seem to be on the horizon, the feel-good factor is likely to last."
On the data front, jobless claims numbers will be published at 1330 GMT, while investors will also likely keep a keen eye on a bevvy of speeches from policymakers at the Fed throughout the day - including Minneapolis Fed President Neel Kashkari, New York Fed President John Williams, Richmond Fed President Tom Barkin, Chicago Fed President Charles Evans and St Louis Fed President James Bullard.
In corporate news, Acuity Brands, Simply Good Foods, KB Home and Synbnex will all report their latest quarterly earnings on Thursday.