
U.S. stock futures rose on Tuesday, as the Nasdaq 100, S&P 500, and the Dow Jones indices gained, following Monday’s mixed close.
President Donald Trump posted early Monday that "both sides, Israel and Iran, are looking to do an immediate ceasefire," shortly before Iran's armed forces said they had ended military operations against Israel, while warning of "harsher attacks" if strikes on Lebanon resume.
The Nasdaq rebounded on Monday, driven by encouraging remarks from tech leaders, including Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang, who indicated that the recent market pullback offers a prime entry point for artificial intelligence (AI) investments.
Meanwhile, the 10-year Treasury bond yielded 4.55%, and the two-year bond was at 4.15%. The CME Group's FedWatch tool‘s projections show markets pricing a 98.2% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.16% |
| S&P 500 | 0.38% |
| Nasdaq 100 | 0.71% |
| Russell 2000 | 0.72% |
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 Tuesday. The SPY was up 0.45% at $742.54, while the QQQ advanced by 0.78% to $721.66.
Sectors on the S&P 500 that closed higher on Monday included only information technology, energy, and consumer discretionary. Consumer staples, utilities, real estate, health care, financials, materials, communication services, and industrials fell.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.16% | 50,786.01 |
| S&P 500 | 0.30% | 7,405.73 |
| Nasdaq Composite | 0.86% | 25,929.66 |
| Russell 2000 | 0.77% | 2,855.42 |
LPL Financial expects the U.S. economy to maintain its current momentum, noting that “incoming data has generally surprised to the upside.”
This resilient data supports a “broader narrative of resilience” or a “soft landing plus” scenario, driven largely by rising near-term real growth expectations. This strength is heavily underpinned by “ongoing investment in the artificial intelligence buildout”.
Regarding the stock market, LPL Financial’s Strategic and Tactical Asset Allocation Committee (STAAC) expects “further easing of geopolitical and commodity supply concerns” stemming from the U.S.-Iran conflict.
Consequently, the firm maintains a positive outlook for equities over fixed income, recommending a “tactical equity overweight and fixed income underweight.”
To navigate the changing rate environment safely, they advise expressing this tactical equity exposure “via a defensive factor tilt.”
Ultimately, while bond yields face a transition, LPL Financial anticipates that the combination of robust productivity gains and underlying economic resilience will continue to provide a supportive backdrop for corporate earnings and the broader equity market.
Here's what investors will be keeping an eye on Tuesday.
Crude oil futures were trading lower in the early New York session by 2.41% to hover around $89.10 per barrel.
Gold Spot US Dollar rose 0.10% to hover around $4,334.45 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.12% lower at the 99.9250 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.33% lower at $99.9250 per coin, as per the last 24 hours.
Asian markets closed mixed on Tuesday, as Hong Kong's Hang Seng and Australia's ASX 200 indices declined, while India’s Nifty 50, Japan's Nikkei 225, South Korea's Kospi, and China’s CSI 300 indices rose. European markets were also mixed in early trade.
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