U.S. equity futures climbed early Tuesday following the long holiday weekend, with major indexes posting gains as investors weighed ongoing Middle East developments and shifts in energy prices. The cautious optimism comes amid continued geopolitical uncertainty impacting commodity markets and expectations for Federal Reserve policy.
At 4:33 p.m. (Bangkok Time), Dow Jones Industrial Average futures rose by 0.43%. S&P 500 contracts gained 0.54%, while Nasdaq-100 futures increased by 0.87%. The moves follow statements by President Donald Trump indicating that peace talks with Iran were making headway, even as renewed U.S. military actions targeted Iranian missile assets and naval vessels.
Oil markets saw volatile trading, with West Texas Intermediate contracts tumbling by 3.56% to $93.16 per barrel after Trump signaled progress in diplomatic efforts. By contrast, Brent crude futures rose 3.69% to $99.69. Despite the pullback, oil prices remain elevated relative to earlier in the year, sustaining upward pressure on inflation and influencing expectations around monetary policy shifts.
Investor sentiment toward the Federal Reserve’s next steps was also evolving. Latest data from the CME Group’s FedWatch tool indicates that markets now see an 8.5% probability of a rate hike at July’s meeting, up from under 1% a month prior.
Space sector shares drew attention ahead of SpaceX’s anticipated IPO in June, with companies like Redwire, AST Spacemobile, Rocket Labs, and Intuitive Machines experiencing increased trading activity.
On the data calendar, market participants are set to review the latest U.S. consumer confidence figures, released at 10:00 a.m. (Eastern Time). The corporate earnings docket includes results due from AutoZone, Cargo Aircraft Management, and Elbit Systems before markets open, while several technology firms such as Zscaler and Box Inc. report after the close. Later in the week, investor focus will turn to earnings releases from Snowflake and Marvell Technology.
