Australian shares are set to rise 1 per cent at the open on Thursday, tracking similar strong gains in New York as investors reacted to heightening prospects of a peace agreement between the US and Iran.

Oil briefly plunged below $US100 a barrel, and gold rose towards $US4700 an ounce. The yield on the US 10-year note tumbled 8 basis points to 4.35 per cent.

“Markets reacted favourably overnight as President Trump signalled progress toward a final agreement with Iran,” said Westpac economist Luka Belobrajdic.

“The President said he would pause ‘Project Freedom’, with the US delivering Iran a one-page memorandum of understanding that would gradually reopen the Strait of Hormuz and lift the naval blockade.”

ASX 200 futures are pointing up 95 points, or 1.1 per cent, to 8892. The S&P 500 closed 1.5 per cent higher in New York on Wednesday (Thursday AEST), paced by industrials and information tech. The US benchmark has risen 16 per cent from its March 30 low, bolstering its market cap by more than $US9 trillion.

Both the S&P 500 and the Nasdaq Composite reset their intraday record highs. The S&P 500 reached 7369.22, while the Nasdaq hit 25,850.19. Each index reset its record closing highs, too.

Nvidia was 5.7 per cent higher, retaking the $US5 trillion ($7 trillion) market cap level. It advanced after smaller rival AMD soared 18.6 per cent to reach a record high after a flood of data centre spending bolstered its sales forecast.

Each of the magnificent seven mega-cap techs were higher. The NYSE Fang + Index advanced 1.3 per cent. The Philadelphia semiconductor index leapt 4.5 per cent, lifting its year-to-date advance to 60 per cent.

Market highlights

ASX 200 futures are pointing up 95 points or 1.1 per cent to 8892.
All US prices near 5.15pm New York time (7.15am AEST).

AUD +0.8% to US72.37¢Bitcoin -0.2% to $US81,402On Wall St: Dow +1.2% S&P +1.5% Nasdaq +2%VIX +0.01 to 17.39Gold +3% to $US4691.33 an ounceBrent oil -7.1% to $US102.09 a barrelIron ore +1.9% to $US110.60 a tonne10-year yield: US +4.35% Australia +4.95%Thursday’s agenda

Results are expected from mining services giant Orica and gaming company Light & Wonder.

March trade data will be released at 11.30am AEST. Foreign reserves will be released at 4.30pm AEST.

Overseas, the Bank of Japan will release minutes from its latest policy meeting and policymakers in Sweden are set to meet.

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