US equity futures edged higher pre-bell Friday as traders monitored developments on the peace negotiations between US and Iran as the two countries reportedly agreed on a memorandum of understanding to extend the ceasefire by 60 days.

Dow Jones Industrial Average futures were 0.3% higher, S&P 500 futures were up 0.1%, and Nasdaq futures were flat.

The memorandum still has to be approved by President Donald Trump, and Iran has not yet given a response to the latest version. Vice President JD Vance said the talks are making progress but still ongoing, while Treasury Secretary Scott Bessent confirmed that the negotiation teams have been "going back and forth."

Iran reportedly fired missiles at unidentified targets on Thursday while the Pentagon said Iran had launched a ballistic missile towards Kuwait and deployed attack drones in the Strait of Hormuz.

Traders also digested the latest round of earnings, with Costco Wholesale (COST) posting higher fiscal Q3 earnings and revenue late Thursday.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.6% at $91.19 per barrel and US West Texas Intermediate crude 1.5% lower at $87.58 per barrel.

The international trade in goods report for April, scheduled for release at 8:30 am ET, is expected to show the deficit narrowing to $87 billion from the revised value of $87.40 billion in the prior month, according to estimates compiled by Bloomberg.

The Chicago purchasing managers index for May, due at 9:45 am ET, is seen coming in at 50.3, up from its prior value of 49.2.

Federal Reserve Vice Chair Michelle Bowman, Philadelphia Fed President Anna Paulson, and San Francisco Fed President Mary Daly are slated to speak on Friday.