Futures Pointing To Continued Strength On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to extend the strong upward move seen over the past few sessions.

Technology stocks may help lead the markets higher early in the session, as reflected by the 1.1 percent jump by the tech-heavy Nasdaq 100 futures.

Shares of Palantir (PLTR) are soaring more than 15 percent in pre-market trading after the enterprise software giant reported better than expected second quarter results and raised its full-year guidance.

"This quarter was otherworldly: our U.S. commercial revenue grew 149% year-over-year, our overall revenue grew 93% year-over-year, and our Rule of 40 score climbed to 155%," said Palantir Co-Founder and CEO Alex Karp. "The sovereign AI revolution makes us very optimistic about the future."

An extended nosedive by the price of crude oil may also generate early buying interest, with U.S. crude oil futures plunging by more than 3 percent and plummeting by more than 5 percent on Monday.

Crude oil prices had moved higher earlier in the day but reversed course after Treasury Secretary Scott Bessent claimed the U.S. and Iran could reach a deal to reopen the Strait of Hormuz within the next couple days.

"We are in talks with the Iranians," Bessent told CNBC's "Squawk Box." "There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict."

Stocks moved sharply higher in early trading on Monday and saw even further upside as the day progressed. The major averages all showed significant advances, extending the strong upward move seen over the two previous sessions.

The major averages ended the day not far off their highs of the session. The Nasdaq surged 540.04 points or 2.1 percent to 25,913.90, the S&P 500 shot up 110.78 points or 1.5 percent to 7,600.50 and the Dow jumped 693.38 points or 1.3 percent to 53,178.41.

The rally on Wall Street came as crude oil prices plummeted amid renewed optimism about an end to the conflict in the Middle East.

U.S. crude oil futures plunged more than 5 percent after President Donald Trump said in a post on Truth Social that he had canceled a planned attack on Iran.

"We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to," Trump said. "This would include the Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat."

He added, "Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL."

Trump later claimed that talks between the U.S. and Iran would begin Monday afternoon, although Tehran has denied there are plans for direct negotiations with the U.S.

Airline stocks saw substantial strength amid the nosedive by crude oil prices, with the NYSE Arca Airline Index soaring by 4.9 percent.

Significant strength was also visible among software stocks, as reflected by the 4.1 percent spike by the Dow Jones U.S. Software Index. The index jumped to a two-month closing high.

Retail stocks also extended the rally seen last Friday, driving the Dow Jones U.S. Retail Index up by 2.6 percent to its highest closing level in almost three months.

Housing, gold and telecom stocks also saw considerable strength, while pharmaceutical stocks bucked the uptrend, dragging the NYSE Arca Pharmaceutical Index down by 1.8 percent.

In U.S. economic news, the Institute for Supply Management released a report showing its reading on U.S. manufacturing activity increased by more than expected in the month of July.

The ISM said its manufacturing PMI climbed to 55.6 in July from 53.3 in June, with a reading above 50 indicating growth in the sector. Economists had expected the index to rise to 54.0.

With the much bigger-than-expected increase, the index reached its highest level since hitting 55.9 in May 2022.

Commodity, Currency Markets

Crude oil futures are plunging $2.49 to $77.85 a barrel after plummeting $4.33 to $80.34 a barrel on Monday. Meanwhile, after falling $16.50 to $4,090.50 ounce in the previous session, gold futures are jumping $39.60 to $4,130.10 an ounce.

On the currency front, the U.S. dollar is trading at 157.46 yen compared to the 157.16 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1522 compared to yesterday's $1.1507.

Asia

Asian stocks ended mostly higher on Tuesday as investors reacted to upbeat U.S. manufacturing data along with mixed messages regarding U.S.-Iran peace negotiations.

The U.S.-Iran conflict remained at a stalemate, with U.S. President Donald Trump insisting that negotiations with Iran are already underway and they have been given a "last chance" to reach an agreement.

Tehran denied holding direct talks with Washinton and emphasized that the ongoing talks are only between Iran and Oman to ensure safe navigation through the Strait of Hormuz, a vital global oil shipping route.

The U.S. dollar held steady, while gold edged up slightly to $4,065 an ounce ahead of job openings, ADP employment, ISM Services PMI and the non-farm payrolls report due this week.

Brent crude futures rose more than 1 percent toward $85 a barrel after a cargo vessel was struck by an unknown projectile near AI Khasab, Oman.

China's Shanghai Composite Index rose 0.3 percent to 3,822.28 as AI and semiconductor stocks rebounded from a recent sell-off. Hong Kong's Hang Seng Index dropped 0.6 percent to 25,852.92.

Japanese markets eked out modest gains as investors remained wary of additional coordinated Japan-U.S. intervention in the forex market to prop up the yen against the dollar.

The yen held on to most of its intervention-driven gains after U.S. Treasury Secretary Scott Bessent publicly called on the Federal Reserve to expand its FIMA Repo Facility to help Japan avoid directly selling U.S. Treasuries when supporting the Japanese currency, reigniting concerns about Fed independence.

The Nikkei 225 Index recovered from an early slide to finish 0.3 percent higher at 63,957.53 while the broader Topix Index settled marginally higher at 3,961.78.

Chip-related stocks surged, with Kioxia Holdings spiking 6 percent. Car giant Toyota Motor fell 1.5 percent despite raising its profit forecasts.

Seoul stocks ended a highly volatile session sharply higher as Finance Minister Koo Yun-cheol vowed to take steps to curb stock market volatility.

Investors also cheered data that showed South Korea's inflation moderated in July after reaching a 30-month high in June, partly because of government measures to cap nationwide fuel prices.

The Kospi Index ended 1.6 percent higher at 6,358.95 following the previous session's over 5-percent plunge amid uncertainty over AI adoption and lofty tech valuations.

Australian markets rallied to close at a record high, with bank and lithium stocks leading the surge. The benchmark S&P/ASX 200 Index surged 1.4 percent to 9,145.80, while the broader All Ordinaries Index closed 1.5 percent higher at 9.311.90.

Liontown jumped 4 percent after the company outlined a more constructive outlook for the lithium market.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index ended 0.9 percent higher at 13,903.46, extending gains from the previous session as data showed U.S. manufacturing activity increased to the highest level in more than four years in July.

Europe

European stocks are mostly higher on Tuesday as a slew of positive earnings updates as well as upbeat U.S. manufacturing data released overnight helped offset lingering geopolitical concerns.

While the German DAX Index is up by 0.8 percent, the U.K.'s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.3 percent.

British geotechnical specialist contractor Keller Group fell 1.3 percent despite the company posting a strong set of results for the six months ended 30 June 2026.

Building materials supplier Travis Perkins soared nearly 16 percent after reporting strong interim results.

Smith & Nephew plummeted 6.7 percent. The medical products company cut its full-year revenue growth forecast, citing weaker demand for hip and knee implants in the United States.

Oil & gas major BP Plc rose 1.4 percent after more than doubling its second-quarter replacement cost or RC profit.

HSBC Holdings dropped 1.3 percent. The bank raised its target for cost savings and announced a new share buyback after reporting better-than-expected second-quarter results.

Bayer rallied 3.5 percent. The German conglomerate posted an unexpected increase in second-quarter profit, helped by a strong performance in its crop science business.

Continental dropped 1.8 percent. The tyre maker reported a sharp fall in second-quarter net income after the spin-off of Aumovio.

Chemicals group Evonik Industries advanced 1.7 percent after raising its FY26 adjusted EBITDA view.

Zalando shares slumped 16 percent. The online retailer revised its 2026 revenue and growth outlook to the lower end of its previously guided range.

Lufthansa plunged 10 percent after the airline group warned of a lower operating profit this year, citing an uncertain geopolitical and macroeconomic environment.

U.S. Economic News

With the value of imports slumping by much more than the value of exports, the Commerce Department released a report on Tuesday showing the U.S. trade deficit narrowed roughly in line with economist estimates in the month of June.

The Commerce Department said the trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion.

The narrower trade deficit came as the value of imports tumbled by 1.8 percent to $338.0 billion, while the value of exports slid by 0.9 percent to $314.7 billion.

At 10 am ET, the Labor Department is scheduled to release its report on job openings in the month of June. Job openings are expected to decrease to 7.350 million in June from 7.594 million in May.

The Commerce Department is also due to release its report on new orders for manufactured goods in the month of June at 10 am ET. Factory orders are expected to increase by 0.4 percent in June after slumping by 1.3 percent in May.