US STOCKS-Wall St set to open near record highs as oil extends losses

U.S. stocks ‌were ​on track to open at near record highs on Thursday as oil prices plunged further on hopes of a U.S.-Iran peace agreement that could potentially normalize crude supplies through the Strait of Hormuz. The United States and Iran are edging ‌toward a limited, temporary deal to halt their war, sources and officials said, with growing optimism that it could pave the way for the narrow waterway - a vital artery for global energy and trade - to open.

U.S. stocks ‌were ​on track to open at near record highs on Thursday as oil prices plunged further on hopes of a U.S.-Iran peace agreement that could potentially normalize crude supplies through the Strait of Hormuz.

The United States and Iran are edging ‌toward a limited, temporary deal to halt their war, sources and officials said, with growing optimism that it could pave the way for the narrow waterway - a vital artery for global energy and trade - to open. Tehran is expected to respond to the peace proposals.

Global stocks climbed to record peaks while oil prices fell about 5%, ‌retreating deeper from $100 a barrel. "I'd be surprised if this conflict lasts. If it does, it's because the Iranians want to keep it lasting. I think ‌Trump wants to get this resolved," said Robert Pavlik, senior portfolio manager at Dakota Wealth.

A relentless rally in technology and AI names has also played a big role in pushing U.S. stocks to fresh highs as investors cheered a strong earnings season and upbeat economic data. The tech rally appeared to stall somewhat on Thursday, with U.S.-listed shares of Arm Holdings sliding 7.4% before the bell as worries ⁠about the ​company's ability to secure sufficient supplies for its ⁠new AI chip overshadowed a strong earnings forecast.

Shares of other chipmakers also fell. Intel dropped 3.3%, while Nvidia was down 0.3%. By 08:33 a.m. ET, Dow E-minis rose 128 points, or 0.26%, S&P ⁠500 E-minis added 11 points, or 0.15%, and Nasdaq 100 E-minis gained 22.25 points, or 0.08%.

Data showed the number of Americans filing claims for unemployment benefits increased less than expected ​last week amid low layoffs that are helping anchor the labor market. After a strong private payrolls report on Wednesday, investors are awaiting the more ⁠comprehensive nonfarm payrolls data on Friday, with jobs seen increasing by 62,000 in April after rebounding 178,000 in March, according to a Reuters poll of economists.

Traders continued to bet the U.S. Federal Reserve would ⁠hold interest ​rates steady through the end of the year due to a resilient labor market and elevated energy prices. That is a stark shift from several rate cuts investors priced in before the war. Fed presidents Neel Kashkari of Minneapolis and Beth Hammack of Cleveland as well as New York head John Williams - all ⁠voting members of the interest rate-setting committee this year - are scheduled to speak later in the day.

In other movers, McDonald's climbed 2.7% after the world's biggest burger ⁠chain beat quarterly estimates for revenue and profit. Datadog ⁠surged almost 30% after the cloud security firm raised its full-year earnings forecast.

Snap tumbled 8% after the Snapchat parent said its first-quarter advertising revenue was impacted by the Middle East conflict and slowing growth in North America. Whirlpool slumped 22% ‌after the home-appliance maker missed ‌analysts' estimates for first-quarter sales and suspended its dividend.