U.S. equity futures showed modest gains early Tuesday as investors evaluated the market’s positive momentum following Wall Street’s strong performance to start the week. Sentiment improved on easing geopolitical risks and supportive developments surrounding U.S. monetary policy.
At 4:27 p.m. (Bangkok Time), futures linked to the Dow Jones Industrial Average surged 0.15%, while contracts connected to the S&P 500 and Nasdaq 100 edged up by 0.07% and 0.1% respectively. The increases follow a broad rally Monday, when equities surged after tensions between the United States and Iran subsided, leading investors to position for reduced geopolitical risk.
The S&P 500 climbed 1.18% and the Nasdaq Composite delivered a 2.07% gain on Monday. The Dow Jones Industrial Average rose 306.63 points, or 0.59%, closing above the 52,000 mark for the first time, setting a new record. Strength in Alphabet, which rose nearly 5% during its morning session as a Dow component, significantly contributed to the blue-chip index’s advance.
Market confidence received an additional lift from a Supreme Court decision upholding the Federal Reserve’s autonomy, as well as developments suggesting an end to recent hostilities between the U.S. and Iran.
In commodity markets, oil prices declined on Tuesday. Optimism regarding a potential resolution to conflict in the Middle East and the reopening of the Strait of Hormuz pressured prices lower. Brent crude futures, the international benchmark, was recently trading down 0.37% at $72.88 per barrel, while the contract linked to West Texas Intermediate crude slid by 0.13% to $70.66.
On the corporate front, Nike is scheduled to announce its earnings later Tuesday, a period viewed as challenging for the company. Looking ahead, investors are monitoring upcoming U.S. labor market data, including the June jobs report, which could provide further insight into future Federal Reserve policy. Continued strength in employment figures may support the view that interest rates will remain elevated or could even rise further this year.
