Futures for major U.S. equity indices advanced on Tuesday, reversing some of the previous session’s declines that were driven by increased instability in the Middle East.
At 4:26 p.m. (Bangkok Time), S&P 500 futures climbed by 0.32%, while the Nasdaq 100 futures gained 0.55%. Dow Jones Industrial Average futures also showed upward momentum, adding 0.26%.
In trading action on Monday, the Dow experienced a significant loss, dropping 1.13%. The broader S&P 500 also retreated by 0.41%, with the Nasdaq Composite posting a 0.19% decline. Market participants have grown more cautious following reports from the United Arab Emirates that Iran launched drone and missile attacks, stirring fears over the durability of an existing ceasefire arrangement with the U.S.
The geopolitical situation further weighed on sentiment as reports surfaced that the United States destroyed several Iranian boats in the Strait of Hormuz. According to Admiral Brad Cooper, head of U.S. Central Command, U.S. forces eliminated six small Iranian vessels trying to disrupt commercial shipping. While this was reported by U.S. officials, Iranian state media denied any losses to its boats.
Amid these developments, energy markets displayed heightened volatility. On Tuesday, West Texas Intermediate crude futures slid 1.98% to $104.31 per barrel. Brent crude futures also lost ground, shedding 1.24% to trade at $113.02 per barrel.
In corporate news, Palantir Technologies reported stronger-than-expected first-quarter revenue and earnings, fueled by increased sales to both commercial and government clients. Despite reporting an 85% rise in revenue, shares of Palantir fell in premarket trading as the market evaluated the earnings release.
Looking ahead, several large companies, including Pfizer, DuPont, PayPal, HSBC, Anheuser-Busch InBev, Marathon Petroleum, Duke Energy, and Shopify, are due to announce their results before the market opens. Additionally, investors are awaiting the latest U.S. trade deficit figures and the updated Job Openings and Labor Turnover Survey for further economic direction.
