U.S. stock futures edged higher on Tuesday, extending the previous session’s gains after President Donald Trump said he would halt further military strikes on Iran, easing fears of a wider conflict in the Middle East and sending oil prices sharply lower.
Dow futures rose about 0.2%, while S&P 500 futures gained 0.2% and Nasdaq-100 futures advanced 0.3%, as investors continued to favour risk assets.
Wall Street rallied on Monday, with the Dow Jones Industrial Average closing at a record high as falling crude prices and strength in heavyweight technology stocks lifted sentiment. WTI crude tumbled more than 5% to settle at $80.34 a barrel after Trump’s comments signalled a de-escalation in tensions.
Investors will now shift their focus to a fresh batch of corporate earnings, with Caterpillar (NYSE:CAT) and McDonald’s (NYSE:MCD) scheduled to report before the opening bell and Advanced Micro Devices (NASDAQ:AMD) due to release results after the market closes.
On the economic front, traders will also monitor June factory orders and U.S. international trade data for further clues on the strength of the economy, while assessing whether easing geopolitical tensions continue to support the recent rebound in equities.
Meanwhile, the 10-year Treasury bond yielded 4.69%, and the two-year bond was at 4.26%. The CME Group’s FedWatch tool’s projections show markets pricing a 62.7% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Monday. The SPY was up 0.11% at $758.48, while the QQQ advanced by 0.57% to $704.05.
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