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U.S. stock index futures rose on Friday as a recovery in chipmakers helped offset worries about renewed U.S.-Iran tensions, while investors looked ahead to a crucial employment report.
By 06:04 a.m. ET, Dow E-minis rose 128 points, or 0.26%. S&P 500 E-minis rose 33.25 points, or 0.45%, and Nasdaq 100 E-minis added 180.5 points, or 0.63%, both trading near record highs.
U.S. stocks had closed lower in the previous session as investors hit pause on semiconductor stocks that have rallied sharply this year, benefiting from a spending boom in artificial-intelligence infrastructure.
Chip stocks steadied on Friday, with Microchip Technology (MCHP.O) rising 3.9% in premarket trading after forecasting first-quarter revenue above estimates on strong demand for its chips used in the industrial and automotive sectors.
Qualcomm (QCOM.O) leapt 4.8%, while Nvidia (NVDA.O) rose 1%.
The gains helped overshadow concerns in global markets as U.S. and Iranian forces clashed in the Gulf, denting hopes of a swift resolution to the Middle East conflict and a gradual reopening of the Strait of Hormuz, a key transit route for oil and liquefied natural gas.
Oil prices , topped $100 a barrel.
"The clock is ticking, as we need to see oil flows resuming sooner rather than later," Barclays strategist Emmanuel Cau said in a note.
"The semis trade is arguably starting to look extended, so wider market breadth and a continued melt-up in equities are contingent on tangible progress regarding the reopening of the Strait of Hormuz."
Despite concerns that oil prices were fueling inflation, the S&P 500 (.SPX) and Nasdaq (.IXIC) have touched record highs, helped by a strong earnings season, signs of a resilient economy and optimism around the outlook for technology and AI companies.
JOBS TEST
The Labor Department's closely watched employment report, scheduled for release at 8:30 a.m. ET, is expected to show nonfarm payrolls increased by 62,000 jobs last month after rebounding 178,000 in March, according to a Reuters poll of economists.
The unemployment rate is seen holding steady at 4.3%, pointing to labor market stability as indicated in recent economic data.
"With inflationary concerns running high, a strong print could move expectations for rate cuts further out yet," said Derren Nathan, head of equity research at Hargreaves Lansdown.
Money market futures imply traders expect the U.S. Federal Reserve to hold interest rates steady in the 3.50% to 3.75% range until the end of the year.
Among other early movers, Cloudflare (NET.N) shares plunged 17% after the cloud services company said it would cut about 20% of its workforce and forecast second-quarter revenue slightly below Wall Street expectations.
Trade Desk (TTD.O) fell 15.8% after the ad-tech firm forecast second-quarter revenue below Wall Street estimates.
CoreWeave (CRWV.O) dropped 6.5% after the cloud infrastructure technology company raised the lower end of its annual capital expenditure forecast, citing a rise in the prices of components.
