US equity futures jumped to a new all time high, reversing modest overnight losses, and oil tumbled to session lows on reports that Iran is sending a delegation to Pakistan today for talks, boosting hopes of ceasefire extension or more. Iranian Foreign Minister Araqchi is expected to arrive in Islamabad at 22:00 local time (1:00pm ET), the NY Post reports. As of 8:00am ET, S&P futures rallied as much a 0.6% to a new all time high of 7,190, reversing a modest loss in overnight trading as Brent tumbled from $107 to around $104 on the report. Tech shares rallied on the back of strong results from Intel and SAP SE, with the Nasdaq 100 up 1.3% and on track for a fourth straight weekly gain with most Mag 7 stocks trading higher. INTC added +29% amid surprises in both earnings and sales across all major businesses; the move will almost certainly extend the gains for semiconductor stocks to 18 straight days. The dollar slid 0.2%. Brent erased gains to fall 1.2% to below $104 a barrel while WTI dropped $1.2 and is now at $94.68 after trading as high as $98 earlier. Treasuries advanced, with the 10-year yield down two basis points at 4.31%. Metals are mixed, gold rebound above $4700; ags are higher. Today's macro data include the final UMich consumer sentiment survey.

In premarket trading, Mag 7 stocks are mostly higher (Microsoft +1.2%, Amazon +0.9%, Alphabet +0.6%, Meta +0.6%, Apple -0.1%, Tesla +0.9%)

In corporate news, DeepSeek rolled out preview versions of a new flagship AI model a year after upending Silicon Valley, calling it the most powerful open-source platform in a challenge to rivals from OpenAI to Anthropic. Cognition AI is said to be in early talks to raise a new round of funding that would more than double its valuation to $25 billion. Mercedes-Benz is assessing potential cybersecurity risks linked to Anthropic’s Mythos model, signaling that concerns over threats from AI bots are spreading beyond the financial sector into the industrial economy. SoftBank plans to transform part of its Osaka factory into a major battery production line to power its AI data centers. President Trump said he is considering having the US purchase Spirit Aviation, saying it could be a potentially good investment for the federal government. United Airlines CEO Scott Kirby on deals, fuel price spikes and turf wars is the subject of today’s

Sentiment was boosted this morning after Pakistani officials familiar with the matter saidIran’s foreign minister was expected in Islamabad on Friday (around 10pm local time),with a second round of talks between Tehran and Washington expected. S&P futures jumped to a record high just under 7,200 as Brent erased gains to fall 1.2% to below $104 a barrel; the dollar slid 0.2%. Treasuries advanced, with the 10-year yield down two basis points at 4.31%. Still, we've seen such premature hope fizzle before; meanwhile in the Middle East, a US-sanctioned supertanker laden with Iranian oil appeared to be attempting to cross the Strait of Hormuz on Friday, with traffic through the waterway otherwise at a virtual standstill. As usual, traders will watch for headlines and signals from the US and Iran, along with shipping flows, for clues on energy supply risks, with any Strait of Hormuz escalation likely to keep oil elevated.

Tech shares rallied on the back of strong results from Intel and SAP, with the Nasdaq 100 on track for a fourth straight weekly gain. Intel surged 29% in premarket trading on a blockbuster sales forecast. Taiwan Semiconductor Manufacturing jumped 5% in Taipei after regulators eased limits on single-stock fund holdings.

“Those who called the end of the AI trade made a big mistake, as we can see looking at the semiconductor space,”said Mabrouk Chetouane, head of global market strategy at Natixis Investment Managers. “The earnings growth is just astounding. It’s a sweet spot where the offer for chips can’t meet the demand.”

Barclays strategist Emmanuel Cau notes the “renewed AI frenzy has seen semis stocks surging, widening further the US/Asia vs Europe performance gap.” US equity strength is supported by technical factors, Bloomberg notes as it echoes what we have been saying since late March, adding that gross exposure is high, net exposure isn’t, and there’s still cash that needs to be put to work.Discretionary managers have benchmarks to beat and higher dispersion shows the earning season is leading to a resumption of micro over macro.

Resurgent optimism over the economic potential of artificial intelligence has powered semiconductor manufacturers to an unprecedented 17-day rally. Investors also see the sector as at little risk of spillover from the Iranian war, with corporate profits and outlooks outpacing expectations in most instances.

“One takeaway from this earnings season is that the US leadership is back because of its dominance in tech, and semiconductors notably,” said David Kruk, head of trading at La Financiere de l’Echiquier in Paris. “Investors are now focusing more on earnings than geopolitics and taking the view that eventually a peace deal will occur.”

Equity and bond funds attracted the bulk of inflows this week, with stocks and IG bonds already tracking record annualized inflows, Bank of America says. Equity funds drew $25.9 billion, with US inflows at $18 billion in the week through April 22, according to BofA citing EPFR Global data.

Source: ZeroHedge News