U.S. futures rise as markets weigh Iran peace prospects and SpaceX IPO

U.S. stock futures gain on Iran deal hopes

By 05:50 ET (09:50 GMT) on Friday, Dow futures were up 422 points, or 0.8%, S&P 500 futures gained 47 points, or 0.6%, and Nasdaq 100 futures rose 159 points, or 0.5%. The moves came as markets reacted to reports of a draft Memorandum of Understanding (MoU) between Washington and Tehran.

According to Iranian state media cited on Friday, the proposed deal would include a commitment from Iran to reopen the Strait of Hormuz and from the U.S. to lift oil sanctions. Mehr news agency reported that the MoU also foresees the release of frozen Iranian funds, with final negotiations focusing on nuclear and economic issues and excluding Iran’s missile program. The draft still requires finalization by the relevant authorities.

Brent crude futures, the global oil benchmark, slipped further after falling below $90 a barrel in the prior session. The decline followed U.S. President Donald Trump’s comments suggesting an agreement to end the war in Iran, now in its fourth month, may be near. Trump said on Thursday that a deal had been reached to unblock the Strait of Hormuz and end an American naval blockade of Iran’s ports, adding that a final document could be signed within days, possibly in Europe.

SpaceX IPO set to test tech market sentiment

SpaceX is scheduled to begin trading on the Nasdaq on Friday under the ticker SPCX, after pricing its initial public offering at $135 per share. The IPO raised $75 billion, making it the largest offering in U.S. history. The company’s $1.77 trillion valuation is based on 13.08 billion shares outstanding, with potential for further expansion if underwriters exercise options to sell additional shares.

Analysts noted that the size of the listing could serve as a key test of recently strong optimism toward the technology sector, particularly ahead of possible major IPOs from artificial intelligence firms OpenAI and Anthropic. Together, these offerings could release substantial liquidity into the tech space and help shape a new cohort of large technology companies.

Elon Musk, who founded SpaceX in 2002 and holds about a 50% stake, could become the world’s first trillionaire following the IPO, according to the report. A Reuters/Ipsos poll published Thursday indicated that 84% of Americans are familiar with SpaceX, reflecting its prominence through reusable rocket launches and the Starlink satellite internet service. The company’s scope broadened further in February when it merged with xAI, Musk’s artificial intelligence firm known for its Grok chatbot.

Analysts at Vital Knowledge noted that “SpaceX is edging out Iran as the dominant topic of discussion this morning, as ‘shadow markets’ point to a sizeable bounce when the stock opens for trading.”

FAQ

What is driving U.S. stock futures higher today?
U.S. stock futures are rising on Friday as investors respond to reports of a proposed peace deal between the U.S. and Iran and anticipate the record-setting initial public offering of SpaceX.

What are the key elements of the proposed U.S.–Iran agreement?
The draft MoU reported by Iranian state media includes reopening the Strait of Hormuz, lifting U.S. oil sanctions, releasing frozen Iranian funds, and focusing final talks on nuclear and economic issues, while excluding Iran’s missile program. It still requires approval by the relevant authorities.

Why is the SpaceX IPO considered significant for markets?
SpaceX’s IPO is the largest in U.S. history by proceeds and comes with a $1.77 trillion valuation, so its market reception is seen as an important gauge of investor appetite for large technology offerings, ahead of potential IPOs from AI firms such as OpenAI and Anthropic.

How are oil prices reacting to the latest Iran developments?
Brent crude futures are extending losses after dropping below $90 a barrel, with traders reacting to signals from President Trump that an agreement to end the war in Iran and reopen the Strait of Hormuz may be close.