Wall Street rises as oil falls, SpaceX prices $75bn IPO

U.S. stock-index futures rose on Friday, with Dow futures up about 300 points. S&P 500 and Nasdaq-100 futures each gained roughly 0.6% in early trading.

Brent crude fell below $90 a barrel after President Donald Trump indicated the U.S. and Iran could sign a peace agreement as soon as this weekend, raising the possibility the Strait of Hormuz could reopen to shipping. Iranian officials said no final decision has been made.

The drop in oil prices moved expectations for the next Federal Reserve rate increase toward December from earlier bets on October. Lower energy costs reduced estimates of sustained inflation pressure and eased some market concerns.

SpaceX priced its initial public offering at $135 a share, raising about $75 billion and valuing the company near $1.75 trillion to $1.77 trillion. The shares are expected to begin trading on Nasdaq under the ticker SPCX.

The IPO lifted premarket trading in listed space-related companies. Rocket Lab and Intuitive Machines each rose about 7%, while Planet Labs gained nearly 4%. Exchange-traded funds and other funds with exposure to satellites and orbital infrastructure also advanced.

Adobe fell more than 5% in premarket trade after the company disclosed plans for Chief Financial Officer Dan Durn to depart, even as it raised its annual outlook. Airlines such as Alaska Air and Delta gained as lower fuel costs eased margin pressure.

Investors shifted funds back into growth-oriented assets as inflation expectations softened. Market participants said they will watch crude prices, Federal Reserve commentary, diplomatic developments and SpaceX’s trading debut for signals about whether the rally will hold.