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

US stocks are tipped to open modestly positively on Thursday as markets await a response from Tehran to Washington’s proposed peace plan.

Dow Jones futures were up 0.1% while S&P 500 and Nasdaq 100 futures hovered just above flat, paring earlier pre-market gains.

The muted tone follows a strong session on Wall Street, where tech stocks led the charge. The Nasdaq rose 2% to 25,839 and the S&P 500 gained 1.5% to close at 7,365, both closing at fresh record highs, while the Dow added 612 points, or 1.2%, to finish at 49,911.

The rally was driven by easing geopolitical tensions as President Trump paused the Strait of Hormuz tanker escort mission to allow space for talks with Iran, while reports suggested a deal to end the conflict could be close.

Later in the day, Trump said there had been “very good talks” over the past 24 hours and that an agreement was “very possible”, though he warned military action would resume if negotiations fail.

Both sides were said to be near agreement on a one-page memorandum, Reuters reported, though Iranian media said the proposal contains “unacceptable” elements.

With Iran expected to give its response to a US proposal to end the war later today, per a report from CNN, or at least by the weekend, markets are holding their breath.

Markets in Asia played catch-up in their Thursday session, with major indices up 2-3%, while Europe is softer, with the FTSE 100 down 0.55% and the DAX off 0.2%.

Attention now turns to a busy earnings slate, with pre-market updates from Shell, McDonald’s, Canadian Natural Resources and Howmet Aerospace, while Gilead, McKesson, Airbnb and Cloudflare report after the close.