Dow futures surge 370 points: 5 things to know before market opens

• Semiconductor stocks rebounded strongly with NVIDIA, Intel, and Micron rising 1.2% to 4.7% in premarket trading after Wednesday's correction pushed parts of the tech sector down over 10%
• Progress in US-Iran diplomatic talks and expectations for Strait of Hormuz reopening pushed oil prices lower, easing inflation fears that could keep the Fed hawkish
• Investors await Producer Price Index and jobless claims data at 8:30 am ET, which will be critical after May consumer prices rose at the fastest pace in three years due to higher energy costs

Market Summary

Market Overview:

U.S. stock futures rallied Thursday morning following a sharp selloff, with Dow futures climbing 370 points (+0.75%), S&P 500 futures up 0.72%, and Nasdaq 100 futures advancing 1.2%. The rebound comes after major indexes fell over 1% Wednesday, pushing tech stocks into correction territory. The S&P 500 remains approximately 4% below its early June record high.

Key Sector Developments:

Semiconductor stocks led the premarket recovery, with NVIDIA, Intel, and Micron Technology gaining between 1.2% and 4.7%. The rally suggests continued investor appetite for AI-related plays despite valuation concerns and the substantial infrastructure costs required to support artificial intelligence development.

Geopolitical and Commodity Impact:

Progress in U.S.-Iran diplomatic talks helped ease oil price pressures, with expectations of Strait of Hormuz reopening talks remaining on track. Lower crude prices reduced inflation concerns that could force central banks to maintain hawkish policies, providing support for equity markets.

Data and Catalysts:

Markets await the Producer Price Index (PPI) and weekly jobless claims data at 8:30 AM ET. This follows May's Consumer Price Index showing prices rising at the fastest pace in three years, partly driven by Middle East conflict-related energy costs. PPI results will be critical in determining Federal Reserve policy direction.

Individual Movers:

Oracle shares declined 7% after announcing plans to increase AI capital expenditure to $60 billion over the next four years. Conversely, Navan surged on positive earnings. SpaceX's IPO, valued at $1.75 trillion, is scheduled for Friday, testing appetite for high-valuation growth stocks.