Dow Jones set for flat start as market await Iran response to US peace deal

• The Nasdaq rose 2% to 25,839 and S&P 500 gained 1.5% to 7,365 on Wednesday, both hitting fresh record highs, while the Dow added 612 points (1.2%) to close at 49,911
• Iran is expected to respond to the US peace proposal later today or by the weekend, though Iranian media reported the proposal contains 'unacceptable' elements despite both sides nearing agreement on a one-page memorandum
• Major earnings reports are due from Shell, McDonald's, Gilead, McKesson, Airbnb and Cloudflare, as markets balance geopolitical uncertainty with corporate fundamentals

Market Summary: US Futures Flat Ahead of Iran Peace Deal Response

Market Overview:

US stock futures opened modestly positive Thursday morning, with Dow Jones futures up 0.1% and S&P 500 and Nasdaq 100 futures near flat, paring earlier pre-market gains. Markets are in a holding pattern awaiting Iran's response to a US peace proposal.

Previous Session Performance:

Wednesday saw strong gains across major indices, with all three closing at or near record highs:

• Nasdaq: +2% to 25,839
• S&P 500: +1.5% to 7,365
• Dow Jones: +612 points (+1.2%) to 49,911

Geopolitical Developments:

The rally was driven by easing tensions after President Trump paused the Strait of Hormuz tanker escort mission to facilitate negotiations with Iran. Trump characterized recent talks as "very good" and suggested an agreement was "very possible," though warned military action would resume if negotiations fail. Reuters reported both sides are nearing agreement on a one-page memorandum, though Iranian media indicated the proposal contains "unacceptable" elements. CNN reports Iran is expected to respond today or by the weekend.

Global Markets:

Asian markets rallied 2-3% in catch-up trading Thursday. European markets declined, with the FTSE 100 down 0.55% and DAX down 0.2%.

Corporate Events:

A busy earnings day ahead includes pre-market reports from Shell, McDonald's, Canadian Natural Resources, and Howmet Aerospace, with after-hours updates expected from Gilead, McKesson, Airbnb, and Cloudflare.