U.S. futures were trading higher on Tuesday after a positive day of trading on Monday. Futures of major benchmark indices were trading higher.
President Donald Trump announced a “ceasefire” in a Truth Social post, saying that "THE 12 DAY WAR" will be considered "ended."
Despite this, the Foreign Minister of Iran, Syed Abbas Araghchi, refuted claims of a ceasefire, saying that there was "no agreement" for cessation of military operations, in a post on X.
The 10-year Treasury bond yielded 4.35% and the two-year bond was at 3.84%. The CME Group's FedWatch tool‘s projections show markets pricing a 77.3% likelihood of the Federal Reserve keeping the current interest rates unchanged in its July meeting.
| Futures | Change (+/-) |
| Dow Jones | 0.69% |
| S&P 500 | 0.79% |
| Nasdaq 100 | 1.02% |
| Russell 2000 | 1.18% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.83% at $605.11, while the QQQ advanced 1.11% to $537.56, according to Benzinga Pro data.
Cues From Last Session:
On Monday, U.S. stocks saw gains across most S&P 500 sectors, with consumer discretionary, consumer staples, and real estate stocks leading the charge, though energy stocks diverged, ending the session in the red.
Economically, the S&P Global US services PMI dropped to 53.1 in June from 53.7 the prior month, falling short of market expectations of 52.9. Meanwhile, the S&P Global US manufacturing PMI held steady at 52 in June, matching the previous month's figure.
Shares of FactSet Research Systems Inc. (NYSE:FDS) rose approximately 3.5% on Monday after the company released its third-quarter results.
The Dow Jones index ended 375 points or 0.89% higher at 42,581.78, whereas the S&P 500 index rose 0.96% to 6,025.17. Nasdaq Composite advanced 0.94% to 19,630.98, and the small-cap gauge, Russell 2000, gained 1.11% to end at 2,132.68.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 0.94% | 19,630.98 |
| S&P 500 | 0.96% | 6,025.17 |
| Dow Jones | 0.89% | 42,581.78 |
| Russell 2000 | 1.11% | 2,132.68 |
Insights From Analysts:
Senior economist Jeremy Siegel expressed his opinions on the ongoing tensions as Trump announced a ceasefire.
“Geopolitics is a wildcard, but the U.S. is far less exposed than it was in the 1970s. Even a brief closure of the Strait of Hormuz would not derail domestic growth—shale capacity and strategic reserves mute the blow,” he said.
“I maintain that investors should stay overweight equities versus bonds,” he added, sayin that “don't just chase the AI enablers at high multiples to earnings; real margin expansion could very well accrue to users of AI—banks, industrial, consumer-staples, mid-cap firms that are learning where they can cut costs, increase output and improve margins.”
In its most recent note, BlackRock spotlighted the defense sector as a top investment prospect, fueled by escalating geopolitical fragmentation and a worldwide focus on national security.
As per BlackRock, the U.S. distinguishes itself through its extensive defense spending, which, according to SIPRI data, "spends more than double on defense than Europe."
Moreover, the U.S. hosts the world's most advanced defense and defense technology companies, acting as a vital provider of critical systems like air and missile defense for numerous countries.
Within the defense sector, BlackRock identifies substantial opportunities in defense tech. This expansive field includes not just artificial intelligence (AI) and software firms but also crucial IT services and hardware, such as semiconductors, that drive cutting-edge defense capabilities.
BlackRock observes that "growing geopolitical fragmentation and strategic competition in AI are reinforcing the global focus on national security and resilience – creating opportunities in defense." This highlights a targeted investment strategy in defense, where technological leadership and strong national security frameworks are increasingly critical.
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Upcoming Economic Data
Here’s what investors will keep an eye on Tuesday:
- April’s S&P Case-Shiller home price index for 20 cities will be released by 9:00 a.m., and Cleveland Fed President Beth Hammack will speak at 9:15 a.m. ET.
- June consumer confidence data will be out by 10:00 a.m., and the Fed Chairman Jerome Powell will testify to the House Financial Services Committee at 10:00 a.m. ET.
Stocks In Focus:
- TD Synnex Corp. (NYSE:SNX) was up 0.58% in premarket on Tuesday as analysts expect it to report quarterly earnings of $2.72 per share on revenue of $14.32 billion, before the opening bell.
- Carnival Corp. (NYSE:CCL) rose 2.04% as analysts expect it to report quarterly earnings of 24 cents per share on revenue of $6.21 billion, before the opening bell.
- Worthington Enterprises Inc. (NYSE:WOR) advanced 3.55% as analysts expect it to report quarterly earnings of 84 cents per share on revenue of $301.44 million, before the opening bell.
- FedEx Corp. (NYSE:FDX) was 0.47% higher as analysts expect it to report quarterly earnings of $5.87 per share on revenue of $21.84 billion after the closing bell.
- KB Home (NYSE:KBH) was down 0.43% as it revised full-year 2025 housing revenue to be in the range of $6.3 billion to $6.5 billion, down from prior guidance of $6.6 billion to $7 billion.
- Chewy Inc. (NYSE:CHWY) dropped 1.31% as it commenced an underwritten public offering of $1 billion of its Class A common stock by a selling stockholder. It plans to concurrently repurchase $100 million of its common stock from the selling stockholder.
- BlackBerry Ltd. (NYSE:BB) jumped 1.62% as analysts expect it to report quarterly earnings of $0 per share on revenue of $112.19 million after the closing bell.
- Ibio Inc. (NASDAQ:IBIO) surged 44.58% after it announced a conference call scheduled for June 24 to discuss its obesity and cardiometabolic disease pipeline.
- Nektar Therapeutics (NASDAQ:NKTR) zoomed 31.66% ahead of its investor call, where it plans to present top-line data from the 16-week induction period of its Phase 2b REZOLVE-AD clinical trial.
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading lower in the early New York session by 3.40% to hover around $66.18 per barrel.
Gold Spot US Dollar fell 1.29% to hover around $3,325.68 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.30% at the 98.1240 level.
Asian markets ended higher on Tuesday as Australia's ASX 200, Japan's Nikkei 225, China’s CSI 300, South Korea's Kospi, Hong Kong's Hang Seng, and India's S&P BSE Sensex indices advanced. European markets were also higher in early trade.
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