US pre-open: Futures higher as Trump signals great progress in Iran talks

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Wednesday after Donald Trump claimed "great progress" had been made toward securing an agreement with Iran, somewhat easing geopolitical pressures.

As of 1300 BST, Dow Jones futures were up 1.23%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.04% and 1.75% firmer, respectiively.

The Dow closed 356.35 points higher on Tuesday, taking a bite out of losses recorded in the previous session.

Futures traded higher after Trump announced a pause to "Project Freedom", the US plan to guide commercial vessels through the Strait of Hormuz, citing progress in negotiations with Iranian representatives as the reason for the move.

Reuters later reported that the US and ​Iran were closing ‌in on a one-page ​memo to ​end their conlfict, citing ⁠a Pakistani ​source involved ​in the peace efforts. "We will close this ​very ​soon. ⁠We are getting ​close," the ​source ⁠said.

Market sentiment was also boosted by comments from US defence secretary Pete Hegseth, who said the ceasefire between Washington and Tehran "certainly holds" and noted that two US commercial ships, accompanied by American destroyers, had already transited the strait safely, indicating the shipping lane was clear.

Earnings from chipmaker AMD were in focus early on Wednesday after it delivered a stronger‑than‑expected set of first‑quarter results overnight, with demand for artificial‑intelligence hardware continuing to drive rapid growth. AMD said Q1 adjusted earnings came in at $1.37 per share, ahead of the $1.29 consensus, as revenue surged 38% year‑on‑year to $10.25bn from $7.44bn. The California-based firm highlighted that its data‑centre division remained the standout performer in Q1, with sales jumping 57% to $5.8bn as customers ramped up investment in AI‑focused computing.

In terms of Wednesday's earnings, Walt Disney beat quarterly earnings expectations as stronger streaming and theme‑park revenue helped lift results, with adjusted earnings per share coming in at $1.57 on revenue of $25.2bn for the January-March quarter, ahead of forecasts, while Uber also topped estimates, reporting first‑quarter gross bookings of $53.7bn and guiding for $56.25bn-$57.75bn in the June quarter, above analysts' expectations.

CVS Health delivered a stronger‑than‑expected first quarter performance and raised its 2026 outlook as its insurance arm continued to improve, now expecting full‑year profit of $7.30 to $7.50 per share and revenues of at least $405bn, while Restaurant Brands International also posted better‑than‑forecast earnings and revenue, supported by robust international growth and a continued turnaround at Burger King US, with net income rising to $338m and revenue up 7% to $2.26bn.

Warner Bros Discovery will report its latest quarterly figures after the close.

On the macro front, US mortgage applications fell 4.4% in the week ended 1 May, according to the Mortgage Bankers Association, extending the previous week's 2.6% decline. The drop came as benchmark mortgage rates rose by eight basis points, reflecting higher long‑term Treasury yields amid surging energy prices, increased underlying inflation and a resilient labour market that has fuelled expectations of a Federal Reserve rate hike later in the year. Applications to efinancing a mortgage, which are typically more sensitive to week-to-week rate moves, fell 5% week-on-week, while applications to purchase a home were down 3.7%.

Still to come, ADP's April employment change data was slated for release at 1315 BST.

Reporting by Iain Gilbert at Sharecast.com