U.S. ⁠stock index futures rose on Friday and were set for a strong weekly close as ‌investors welcomed signs of easing Middle East tensions.

Sentiment improved after U.S. President Donald Trump said Washington could soon secure ​a peace agreement to end the war with Iran, while urging the Tehran-backed Hezbollah group to respect a 10-day truce that had ​taken effect ​between Lebanon and Israel.

The prospect of de-escalation encouraged investors to buy risk assets, including battered technology and software stocks. Analysts said a broader risk-on move could persist even without an immediate ⁠peace deal, provided investors remain confident that a resolution is ultimately within reach.

"A resolution is more likely than not over the coming weeks even if the path is unlikely to be a straight line," analysts at Deutsche Bank wrote.

At 06:47 a.m., Dow E-minis were up 157 points, or 0.32%, S&P 500 E-minis were up ​13.25 points, or ‌0.19%, and Nasdaq ⁠100 E-minis were ⁠up 26.75 points, or 0.1%.

However, caution around the weekend talks between U.S. and Iranian officials lingers and any breakdown could ​reignite volatility.

Moreover, passage through the Strait of Hormuz remains disrupted, keeping oil ‌prices nearly 36% above pre-war levels even as the S&P 500 ⁠and the Nasdaq Composite fully recovered their earlier losses.

Both indexes marked a second straight record close on Thursday, and all three were on track for a third consecutive weekly gain.

With no major economic data scheduled for release on Friday, investors are likely to focus more on corporate earnings, which so far this week have pointed to a resilient U.S. consumer.

Notable movers in the premarket session included Netflix, which slipped 10.3% after forecasting current-quarter earnings below expectations. The slide comes as co-founder and longtime chairman Reed Hastings steps down, ending a 29-year tenure.

Alcoa fell 2.7% after the aluminum producer reported first-quarter profit and revenue below ‌analyst estimates, citing elevated costs and softening demand.

Fifth Third Bancorp fell ⁠1.8% after reporting first-quarter earnings.

Central bank commentary will also be in ​focus, with San Francisco Fed President Mary Daly, Richmond Fed President Tom Barkin, and Federal Reserve Governor Christopher Waller scheduled to speak.

However, recent remarks from Fed officials have had limited impact on rate expectations.

Markets are currently pricing in ​the central bank ‌to hold interest rates throughout 2026, according to LSEG-compiled data, a stark shift ⁠from pre-war odds when they expected two ​cuts.

(Reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Tasim Zahid)