US-Iran Deal, Market Rally, Fed Outlook

U.S. stock index futures were steady as markets awaited details on a potential deal between the United_States and Iran to extend a ceasefire and lift shipping restrictions through the Strait of Hormuz, pending approval from President Donald Trump. This geopolitical development is easing fears and improving risk appetite, according to Daniela Hathorn of Capita. Despite concerns about the economic impact of the Iran war on inflation and global growth, Wall Street's major indexes, including the S&P_500, Dow Jones Industrial Average, and Nasdaq Composite, have been on a record run, driven by optimism around AI and strong earnings. Dell Technologies surged after raising its forecasts, with Hewlett-Packard and Supermicro also gaining. However, economic data showed U.S. inflation increased at its fastest pace in three years in April, and U.S. GDP for the first quarter was revised lower. The United States — Federal Reserve is expected to keep interest rates steady, but central bankers like Anna Paulson, Neel Kashkari, and Mary Daly have indicated a potential for rate hikes if inflation persists. Meanwhile, Gap Inc. shares tumbled after cutting its sales forecast, while International Flavors & Fragrances rose on a potential sale of its food ingredients business to GHO Capital Partners, and Okta posted strong first-quarter revenue.