Investing.com - Wall Street is expected to post healthy gains at the open Thursday, judging by the U.S. equity futures, as investors reacted positively to the decision by U.S. President Donald Trump to step back from further military action after Iran's attack on U.S.-led forces in Iraq.
Futures for the S&P 500 were trading 11 points, or 0.34%, higher by 07:10 ET (12:10 GMT), futures for the Nasdaq 100 were 44 points, or 0.49%, higher, while the DIJA futures contract was up 101 points, or 0.35%.
In a statement Wednesday President Trump drew back from new military action after Iran’s missile strikes, instead stating that he would tighten already strong U.S. economic sanctions against the Middle East power. He did not state in which area these new sanctions would hit.
These comments came a few hours after Iran’s foreign minister said the missile strikes “concluded” its response to the killing of military leader Qassem Soleimani.
Investors have thus turned away from this spat and started to focus once more on the fundamentals surrounding the U.S. economy, including an easing Federal Reserve and strong employment growth.
With this in mind, attention with turn to a number of FOMC members due to speak today. Investors will undoubtedly study their words for clues as to what the central bank will do at its next meeting, at the end of this month.
As far as sectors are concerned, tech stocks are likely to remain in demand. Shares in Apple Inc (NASDAQ:AAPL) hit an all-time high Wednesday after the tech giant revealed record sales at its App Stores.
Tesla Inc (NASDAQ:TSLA) shares could also be in focus after the electric car maker’s shares jumped 5% yesterday, closing at a record high and pushing its market capitalization to above that of rivals General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) combined.