(RTTNews) - Equities are expected to climb higher at the open on Thursday, recovering from the late-session losses in the prior day. Index futures signal a positive start, with S&P 500 contracts rising 0.8 percent.

Initial buying could emerge after reports that the United States and Iran have reached a preliminary pact to conclude the conflict in the Middle East.

President Donald Trump and Iranian leader Masoud Pezeshkian have both approved the framework document that launches talks aimed at a lasting peace agreement.

The agreement takes effect right away, with Iran set to reopen the Strait of Hormuz while the United States ends its naval restrictions on Iranian ports.

Under the 14-point outline, negotiating teams from both nations will work toward a final accord within the next 60 days.

The development has triggered a sharp decline in oil prices, with futures retreating toward pre-conflict levels from late February.

"This carries major implications for inflation, borrowing costs, and overall confidence among businesses, consumers, and investors," noted Russ Mould, investment director at AJ Bell. "It eases burdens on companies and families while supporting worldwide economic expansion."

Intel (INTC) could spark gains among chip stocks after surging 8.5 percent in pre-market action.

The jump follows a Truth Social post from Trump indicating Apple (AAPL) will collaborate with Intel to develop and manufacture chips domestically.

On the economic front, Labor Department data revealed a slight decline in new unemployment claims for the week ending June 13.

Initial claims fell to 226,000, down 4,000 from the prior week's revised 230,000.

Analysts had forecast a dip to 225,000 from the originally reported 229,000.

Markets fluctuated sharply after the Federal Reserve policy decision on Wednesday before facing heavy selling later in the session.

All major benchmarks finished lower. The Nasdaq dropped 354.69 points or 1.3 percent to 26,021.66, the S&P 500 fell 91.25 points or 1.2 percent to 7,420.10, and the Dow declined 507.12 points or 1 percent to 51,492.55.

Asian-Pacific markets posted mixed results on Thursday. Japan's Nikkei 225 jumped 1.7 percent to a fresh peak, while Hong Kong's Hang Seng Index fell 1.6 percent.

European bourses also showed varied moves. The U.K.'s FTSE 100 slipped 0.9 percent, the French CAC 40 held near flat, and Germany's DAX rose 0.2 percent.

Crude futures dropped $1.62 to $75.17 per barrel after gaining $0.74 the day before. Gold futures tumbled $104.90 to $4,276.50 an ounce following a $27 advance in the prior session.

The dollar traded at 160.87 yen, up from 160.63 yen at the prior New York close. Versus the euro, it stood at $1.1466 compared with $1.1499 yesterday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.