Futures Rise as Traders Weigh Iran Tensions and Earnings: Duolingo Drops, Pinterest Soars
MarketDash
U.S. stock futures edged higher Tuesday after President Trump's 'Project Freedom' announcement, with traders balancing geopolitical risks against a busy earnings calendar.
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U.S. stock futures were pointing higher on Tuesday, recovering some of Monday's losses, as investors digested a mix of escalating geopolitical tensions and a flood of corporate earnings. The catalyst for the overnight move? President Donald Trump's announcement of "Project Freedom" — a military-backed effort to reopen commercial shipping through the Strait of Hormuz after Iran attempted to disrupt it.
The U.S. military said Monday it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones as Tehran tried to interfere with the new initiative. Trump told Fox News that if Iran attacks American vessels, they will be "blown off the face of the Earth." When asked on "The Hugh Hewitt Show" whether the ceasefire was over or a U.S. attack was imminent, Trump replied, "Well, I can't tell you that."
Despite the saber-rattling, futures held onto gains. The 10-year Treasury yield sat at 4.42%, while the two-year yield was at 3.93%. According to the CME Group's FedWatch tool, markets are pricing a 95.9% chance the Fed leaves rates unchanged at its June meeting.
Duolingo Inc. (DUOL) dropped 12.77% in premarket despite beating analyst estimates on both the top and bottom lines. The culprit: disappointing revenue guidance that overshadowed the beat.
Market data indicates that DUOL maintains a strong price trend in the short term but a weak trend in the medium and long terms, with a solid growth score.
Pinterest
Pinterest Inc. (PINS) surged 16.59% after reporting better-than-expected first-quarter results and issuing a strong revenue forecast for the second quarter.
Market data indicates that PINS maintains a strong price trend in the short term but a weak trend in the medium and long terms, with a moderate quality score.
ON Semiconductor
ON Semiconductor Corp. (ON) declined 4.25% despite reporting better-than-expected first-quarter results after Monday's close.
Market data indicates that ON maintains a strong price trend in the short, medium, and long terms, with a poor value ranking.
Advanced Micro Devices
Advanced Micro Devices Inc. (AMD) was 1.94% higher ahead of its earnings scheduled for release after the closing bell. Analysts expect earnings of $1.29 per share on revenue of $9.89 billion.
Market data indicates that AMD maintains a strong price trend in the short, medium, and long terms, with a solid growth score.
Inspire Medical Systems
Inspire Medical Systems Inc. (INSP) plunged 21.04% after the company narrowed full-year revenue guidance to $825–$875 million, down 4%–10% vs 2025, and expected adjusted diluted EPS of $0.75–$1.25, with an assumed adjusted tax rate of 27%–29%.
Market data indicates that INSP maintains a strong price trend in the short term but a weak trend in the medium and long terms, with a good value score.
Cues From Last Session
Information technology and consumer discretionary stocks closed Friday's session higher, although most sectors on the S&P 500 ended on a negative note, with utilities, energy, and industrials posting the largest losses.
Index
Performance (+/-)
Value
Dow Jones
-1.13%
48,941.90
S&P 500
-0.41%
7,200.75
Nasdaq Composite
-0.19%
25,067.80
Russell 2000
-0.60%
2,796.00
Insights From Analysts
LPL Research maintains a positive outlook for the U.S. stock market and economy, primarily driven by the ongoing "AI wave" and robust corporate earnings.
Analysts anticipate that massive capital investments in artificial intelligence (AI) will continue to power a "technology earnings boom," with sector earnings potentially growing over 50% this quarter.
Despite market highs, LPL believes valuations remain reasonable because "the market is still underappreciating technology's AI-driven earnings power." The firm's Strategic and Tactical Asset Allocation Committee (STAAC) recently upgraded its recommendation to a "tactical overweight" for equities, expressing a particular preference for the technology and industrials sectors.
Regarding the broader economy, LPL Research expects "productivity enhancements to drive higher profit margins" as long as a recession is avoided.
While AI adoption may displace some labor, LPL anticipates workers will "reinvent themselves for the new economy," mitigating long-term unemployment risks.
The firm concludes that if companies execute their current spending plans and the economy expands, "technology appears well positioned for additional outperformance in the months and years ahead."
Upcoming Economic Data
Here's what investors will be keeping an eye on Tuesday.
April's S&P final U.S. services PMI will be out by 9:45 a.m. ET. March's job openings, February's delayed new home sales report, March's new home sales, and April's ISM services data will all be released by 10:00 a.m. ET.
Fed Vice Chair for Supervision Michelle Bowman will speak at 10:00 a.m., and Fed Governor Michael Barr will speak at 12:30 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session, down 2.91% to hover around $103.32 per barrel.
Gold Spot U.S. Dollar rose 0.72% to hover around $4,556.43 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.10% higher at the 98.4720 level.
Meanwhile, Bitcoin (BTC) was trading 1.51% higher at $80,818.84 per coin over the last 24 hours.
Asian markets closed mixed on Tuesday, with South Korea's Kospi and Japan's Nikkei 225 rising, while China's CSI 300, Australia's ASX 200, Hong Kong's Hang Seng, and India's Nifty 50 fell. European markets were mostly higher in early trade.
