U.S. stock index futures rose on Thursday, buoyed by reports that the U.S. and Iran have held peace talks despite trading recent strikes, while technology shares eyed a tentative recovery. 

S&P 500 Futures rose 56 points, or 0.8%, by 05:59 ET (09:59 GMT), Nasdaq 100 Futures jumped 333 points, or 1.1%, and Dow Jones Futures rose 392 points, or 0.8%. 

Futures had fallen earlier on Wednesday after sharp losses on Wall Street -- driven by hot U.S. consumer price growth and ongoing tensions in the Middle East -- battered sentiment. Heavyweight technology stocks tumbled amid growing uncertainty over artificial intelligence spending and higher interest rates, although gains in Nasdaq futures pointed to some recovery in the sector. 

U.S.-Iran carry on talks despite fresh strikes - report

The U.S. and Iran carried on negotiations over a potential peace deal overnight, even after they launched a exchange of air attacks for a second straight day, CNN reported.

Meanwhile, Washington and Tehran are still in talks over a preliminary deal which would includes a mechanism to unfreeze Iranian funds, Reuters reported, citing Iranian sources. Efforts to forge such an agreement have intensified, the report added.

Yet uncertainty has continued to surround the discussions, with President Donald Trump warning of more action against Iran if the country did not immediately accept a peace deal.

The U.S. struck multiple military targets in Iran through late-Wednesday and early-Thursday, U.S. Central Command (CENTCOM) said in a statement, describing the attacks as “self-defense” after the downing of an American helicopter near the Strait of Hormuz this week.

Iran retaliated by launching strikes against several U.S. military bases and allies in the Gulf, with explosions heard across Kuwait, Bahrain, and Jordan, according to unconfirmed media reports. Iran also said it had blocked all ship traffic through the Strait of Hormuz, a claim that CENTCOM denied. The latest hostilities come after the U.S. and Iran intermittently traded strikes over the past two weeks amid a flare-up in broader tensions in the region.

"[W]hile the rhetoric from both sides is heated, it doesn’t appear that a full resumption of hostilities is occurring," analysts at Vital Knowledge said.

Iran also traded strikes with Israel over the latter’s hostilities against Tehran-backed Hezbollah militants in Lebanon. The Israeli military on early Thursday warned of projectile launches from Lebanon.

Oracle slides as AI spending target overshadows earnings

Oracle Corporation (NYSE:ORCL) slid in aftermarket trade on Wednesday evening after the cloud company forecast capital expenditures of up to $95 billion in fiscal 2027, much higher than Wall Street expectations of about $68 billion.

The firm also said it will raise $40 billion in debt and equity financing in 2027, largely overshadowing stronger-than-expected quarterly earnings.

Oracle has been aiming to position itself as a major data center provider for customers such as OpenAI. But its forecast for outsized spending in 2027 comes amid some doubts over the long-term sustainability of the AI trade – a notion that had sparked a broad rotation out of tech over the past week.

Uncertainty over Oracle and AI spending was furthered by a Wall Street Journal report that OpenAI was planning to drastically cut its AI prices, as the ChatGPT-maker faces heightened competition from rival Anthropic. 

Declines in tech sector shares, especially in big-name chipmakers, have hit Wall Street in recent sessions. The S&P 500 fell 1.6% on Wednesday, the Nasdaq Composite slid nearly 2%, and the Dow Jones Industrial Average lost 1.9% -- its worst day of 2026 so far. 

Tech was also pressured by fears of higher interest rates, which were exacerbated by an acceleration in U.S. consumer price growth in May. Bets that the Federal Reserve will lift rates by the end of the year were bolstered. A separate gauge of producer price gains, due out later today, may provide further insight into inflation.

Elsewhere, investors are focused this week on the possible $1.75 trillion listing of SpaceX on Friday, which stands to be the biggest flotation in history.