Dow opens 170 points higher as Wall Street extends record rally

Wall Street extended its record rally on Thursday, with the Dow Jones Industrial Average opening 170 points higher. Premarket futures for the S&P 500 and Nasdaq 100 rose 0.2% and 0.1%, respectively, while Dow futures climbed 0.3%, as investors reacted to developments in the US-Iran conflict. Reports suggested Iran was reviewing a US-backed peace proposal aimed at ending the nearly 10-week-long war, with Tehran expected to respond as early as Thursday. Progress toward reopening the Strait of Hormuz also eased oil prices, with Brent crude dropping below $100 per barrel, which helped alleviate inflation concerns and boosted risk assets. The broader market rally was supported by strong earnings from major companies, particularly in AI-driven tech sectors. Chip designer Arm initially surged after issuing a strong revenue forecast but later slipped amid concerns over chip supply constraints. McDonald’s shares rose after reporting better-than-expected first-quarter earnings, driven by value-focused consumer spending amid economic uncertainty. The earnings-heavy week continues, with Shake Shack and Papa John’s scheduled to report before market open. Investors also assessed labor market data ahead of Friday’s jobs report. A Challenger report released Thursday showed layoffs rose in April, with the tech sector hardest hit due to AI-related restructuring. However, weekly jobless claims came in lower than expected, offering some relief about the US labor market’s health. The mixed signals on employment did not deter the market’s upward momentum, as optimism over geopolitical and energy developments outweighed concerns.