Wall Street's major indexes were set to extend gains on Friday, after closing ‌at record highs the previous session, with markets awaiting details on reports that the U.S. and Iran had reached a deal.

Sources told Reuters ​that Washington and Tehran had agreed to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, but President Donald ​Trump ​was yet to approve it.

"Markets are ending May with a risk-on bias, driven by AI enthusiasm, lower oil prices and growing expectations that U.S.-Iran tensions may remain contained, thanks to an extended ceasefire framework," said Bob Savage, ⁠head of markets macro strategy at BNY.

"At the same time, central banks are still focused on inflation risks, with ECB and Fed officials warning that supply shocks and elevated inflation expectations could keep rate hikes in play as growth sentiment improves."

U.S. economic data on Thursday showed inflation increased at its fastest pace in three years in April, while GDP ​for the first quarter was ‌revised lower to ⁠a 1.6% annual rise.

At ⁠08:10 a.m. ET, Dow E-minis were up 134 points, or 0.26%, S&P 500 E-minis were up 9.25 points, or 0.12%, and Nasdaq ​100 E-minis were up 21.5 points, or 0.07%.

Wall Street's major indexes have been ‌on a record run, driven by renewed optimism around AI and strong ⁠earnings growth, despite concerns about the Iran war's impact on inflation and global growth.

Dell surged 33.6% before the bell, after raising its full-year profit and revenue forecasts on Thursday. Peers Hewlett Packard Enterprise and Super Micro Computer gained 12.4% and 7.7%, respectively.

The S&P 500 was on track for a ninth consecutive weekly gain, its longest winning streak since December 2023. The Dow Jones and the Nasdaq were also set to end the week higher. All three indexes are set to log a second straight month of gains.

U.S. central bankers have said in recent days that there might be a case for raising interest rates if inflation does not ease soon, while expressing skepticism over AI's ability ‌to aid that process.

Money markets expect the Federal Reserve to keep interest rates steady ⁠for the rest of the year, with some expectations of a 25 basis ​point hike in December.

Investors will keep an eye on comments from Fed presidents Anna Paulson, Neel Kashkari and Mary Daly through the day to gauge the monetary policy path forward.

Among other movers, Gap shares tumbled 15.5% after the apparel retailer cut its ​annual sales forecast, ‌while American Eagle Outfitters dropped 11.4% after keeping its annual comparable sales forecast unchanged.

Okta jumped ⁠10.3% after the digital identity verification firm posted first-quarter ​revenue above expectations.

(Reporting by Twesha Dikshit and Utkarsh Hathi; Editing by Joyjeet Das and Devika Syamnath)