To The Moon

U.S. stock futures rose on Friday as all three indices, including Dow Jones, S&P 500 and Nasdaq 100, advanced after Thursday’s positive moves.

However, persistent uncertainty surrounding the U.S.-Iran peace talks is capping enthusiasm as Reuters reports that a directive from Iran's Supreme Leader to keep its enriched uranium stockpile within the country has hardened Tehran’s stance on a core American demand.

While Pakistan attempts to mediate a breakthrough, investor caution remains elevated over unresolved sticking points regarding the Strait of Hormuz and a potential global energy shock, pushing oil prices higher and keeping the U.S. dollar near a six-week high.

Meanwhile, the 10-year Treasury bond yielded 4.57%, and the two-year bond was at 4.09%. The CME Group's FedWatch tool‘s projections show markets pricing a 97.2% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Friday. The SPY was up 0.39% at $745.58, while the QQQ was higher by 0.59% to $718.71.

Stocks In Focus

Ross Stores

• Ross Stores Inc. (NASDAQ:ROST) rose 5.34% in premarket on Friday after reporting better-than-expected first-quarter financial results and raising its FY26 earnings guidance.

• Benzinga’s Edge Stock Rankings indicate that ROST maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a moderate value score.

Zoom Communications

• Zoom Communications Inc. (NASDAQ:ZM) jumped 6.46% after reporting better-than-expected first-quarter financial results and raising its FY27 guidance.

• Benzinga’s Edge Stock Rankings indicate that ZM maintains a strong price trend in the short, long, and medium terms, with a solid growth score.

Take-Two Interactive Software

• Take-Two Interactive Software Inc. (NASDAQ:TTWO) advanced 5.05% after reporting upbeat fourth-quarter financial results and issuing strong first-quarter earnings guidance.

• Benzinga’s Edge Stock Rankings indicate that TTWO maintains a weak price trend in the long, short, and medium terms.

Workday

• Workday Inc. (NASDAQ:WDAY) soared 12.02% after it reported quarterly earnings of $2.66 per share, which beat the Street estimate of $2.51 by 5.98%. Its quarterly revenue came in at $2.54 billion, which beat the analyst consensus estimate of $2.52 billion.

• Benzinga’s Edge Stock Rankings indicate that WDAY maintains a weak price trend in the short, long, and medium terms, with a poor quality rank.

Estee Lauder Companies

• Estee Lauder Companies Inc. (NYSE:EL) gained 10.40% as it ended discussions about a potential business combination with Puig.

• Benzinga’s Edge Stock Rankings indicate that EL maintains a weak price trend in the short, long, and medium terms, with a poor growth ranking.

Cues From Last Session

Materials, utilities, and consumer discretionary sectors recorded the biggest gains on Thursday, helping most S&P 500 sectors close on a positive note. Conversely, consumer staples and energy stocks bucked the broader market trend to finish the session lower.

Insights From Analysts

According to Jennifer Timmerman, Investment Strategy Analyst at Wells Fargo, recent economic indicators present a complicated picture for the U.S. economy. April’s data revealed that inflation is rising, with topline Consumer Price Index (CPI) inflation climbing 3.8% year-over-year.

Meanwhile, wholesale inflation via the Producer Price Index (PPI) jumped a striking 6%. Timmerman notes that “the inflation news isn’t all bad,” pointing to a more subdued core CPI and contained core services inflation.

Additionally, she anticipates that “energy prices to stay above their pre-war levels for most of the balance of 2026,” impacting everyday consumer costs like gasoline and groceries.

For stock market investors navigating this landscape, Timmerman counsels against reactionary decisions. She asserts that “it’s prudent to maintain exposure to longer-term themes but adjust when potential opportunities appear to add value.”

While Wells Fargo favors Information Technology, Timmerman suggests looking toward less expensive sectors, building out artificial intelligence infrastructure, such as Industrials and Utilities. Specifically, she highlights opportunities in Machinery, Electrical Equipment, and Aerospace and Defense companies as sustainable long-term trends.

Upcoming Economic Data

Here's what investors will be keeping an eye on Friday.

• May’s final consumer sentiment data, along with April’s U.S. leading economic indicators data, will be out by 10:00 a.m. ET.

Commodities, Crypto, And Global Equity Markets

Crude oil futures were trading lower in the early New York session by 5.37% to hover around $98.78 per barrel.

Gold Spot US Dollar fell 0.46% to hover around $4,522.17 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.02% lower at the 99.2380 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.75% lower at $77,249.93 per coin, as per the last 24 hours.

Asian markets closed higher on Friday, as India’s Nifty 50, China’s CSI 300, Hong Kong's Hang Seng, Japan's Nikkei 225, South Korea's Kospi, and Australia's ASX 200 indices rose. European markets were also higher in early trade.

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