Financial Market Preview - Friday 29-May

Why It Matters

Easing U.S.–Iran tensions lifts risk appetite, bolstering tech stocks and supporting a broader market rally, while high‑profile deals signal confidence in growth sectors despite macro volatility.

Key Takeaways

• U.S. equity futures rise as S&P and Nasdaq near highs.
• Asia markets climb, led by Japan, South Korea, Taiwan tech stocks.
• Potential US‑Iran ceasefire eases energy concerns, supports oil price dip.
• SpaceX targets $1.8 trillion valuation, below earlier $2 trillion estimate.
• Autodesk to acquire MaintainX for $3.6 billion in all‑cash deal.

Summary

FactSet's Friday market preview highlighted modest gains in U.S. equity futures after Thursday’s near‑session‑high close for the S&P 500 and Nasdaq, while Asian and European equities also posted firmness.

The rally is underpinned by improving sentiment on a possible 60‑day U.S.–Iran cease‑fire, which has softened oil prices to around $87.5 a barrel and steadied rate expectations. Macro data were mixed: New Zealand business confidence rebounded, Italy and Germany unemployment improved, but France and Spain showed weaker inflation and GDP signals.

Corporate headlines featured SpaceX eyeing a $1.8 trillion IPO valuation—down from earlier $2 trillion hopes—while Autodesk announced a $3.6 billion cash acquisition of MaintainX, and Uber Eats faces an Australian competition probe.

The combination of de‑escalating geopolitical risk and strong tech‑sector momentum suggests continued upside for risk‑on assets, yet investors must monitor lingering uncertainties around sanctions, supply‑chain constraints, and regulatory scrutiny.

Original Description

US equity futures are modestly higher, Asian markets are mostly higher, while European equities are also firmer. Equities are being supported by improving sentiment around US-Iran developments, with reports of a potential 60-day ceasefire framework helping to ease concerns around energy supply disruptions and inflation pressures. While negotiations remain ongoing and key issues such as uranium stockpiles are unresolved, the market is increasingly pricing in a de-escalation scenario. This has contributed to softer oil prices, more stable rate expectations, and continued strength in AI and technology-led segments, even as investors remain mindful of lingering geopolitical uncertainty and macro risks.

Companies mentioned: SpaceX, Uber Technologies, Autodesk