U.S. stock index futures ​hit record highs

Dow E-minis were up 244 points, or 0.48%, S&P 500 E-minis were up 38.75 points, or 0.52%, and Nasdaq 100 E-minis were up 228.25 points, or 0.77%

U.S. stock index futures ​rose to record highs on Tuesday, as investors remained optimistic about Middle East peace ‌negotiations despite recent strikes, while AI-led gains in chip stocks boosted sentiment.

U.S. Secretary of State said on Tuesday that negotiating the deal with Iran could “take a few days,” while the U.S. president said on a Truth Social ​post on Monday that talks with Iran were going “nicely.”

Brent crude oil added as much as ​3% and world stocks wavered as uncertainty lingered over whether a deal will be ⁠reached to open up shipping flows through the Strait of Hormuz.

Investors still appear willing to buy ​dips on the assumption that the conflict ultimately de-escalates, said Daniela Hathorn, senior market analyst at Capital.com.

At ​08:50 a.m. GMT, Dow E-minis were up 244 points, or 0.48%, S&P 500 E-minis were up 38.75 points, or 0.52%, and Nasdaq 100 E-minis were up 228.25 points, or 0.77%. U.S. markets were shut on Monday for the ​Memorial Day holiday.

Semiconductor stocks, which have surged on AI-driven demand, led gains. Marvell Technology added 5.7%, while ​Micron and Intel rose nearly 2% each in premarket trading.

U.S. stock market has been trading at record highs with upbeat ‌earnings ⁠and confidence in AI trade driving equities higher despite the ongoing conflict with Iran.

The blue-chip Dow became the last index to hit a record high on Friday, its first since the Iran war began, while the S&P 500 posted its best winning streak since December 2023.

With the earnings season nearly over, ​first-quarter earnings growth is ​expected to be 29% ⁠year-on-year compared to the 16.1% estimated a month ago, according to LSEG data from Friday.