U.S. stock futures were a mixed bag on Tuesday, with the S&P 500 slipping while the Nasdaq 100 and Dow Jones inched higher, following Monday's broad rally. The action comes as investors digest a preliminary U.S.-Iran agreement that could ease geopolitical tensions and reopen a key oil shipping route.

On Monday, President Donald Trump announced a preliminary U.S.-Iran agreement aimed at ending months of conflict, though its final terms and long-term viability remain unresolved. The deal extends April's fragile ceasefire and is expected to reopen the Strait of Hormuz, a critical global oil shipping route. However, both nations stressed that a permanent peace accord has not yet been negotiated. Iranian President Masoud Pezeshkian called the memorandum an "important step" but noted a lasting truce "has yet to take shape."

Meanwhile, the 10-year Treasury bond yielded 4.45%, and the two-year bond was at 4.04%. The CME Group's FedWatch tool shows markets pricing a 98.6% likelihood of the Federal Reserve leaving interest rates unchanged during June's meeting.

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100, respectively, were mixed in premarket on Tuesday. SPY was down 0.10% at $754.04, while QQQ advanced by 0.04% to $744.30.

Stocks In Focus

SpaceX

• Space Exploration Technologies Corp. (SPCX) jumped 8.42% in premarket on Tuesday ahead of its third trading day. Its market capitalization was nearing $3 trillion, surpassing the valuation of Amazon.com Inc. (AMZN).

Dave And Buster's Entertainment

• Dave and Buster's Entertainment Inc. (PLAY) dropped 11.44% as it reported downbeat earnings for the first quarter after the closing bell on Monday.

• MarketDash's Edge Stock Rankings indicate that PLAY maintains a weak price trend in the long and medium terms but a strong trend in the short term, with a poor value score.

Adaptive Biotechnologies

• Adaptive Biotechnologies Corp. (ADPT) tumbled 7.33% after announcing a $250 million convertible Senior Notes offering. The company also announced plans to separate its MRD and Immune Medicine businesses as it evaluates strategic and structural alternatives.

• MarketDash's Edge Stock Rankings indicate that ADPT maintains a strong price trend in the short, medium, and long terms.

Paranovus Entertainment Technology

• Paranovus Entertainment Technology Ltd. (PAVS) surged 30.07% after it announced a $10 million registered direct offering of 50 million shares for strategic acquisitions and working capital.

• MarketDash's Edge Stock Rankings indicate that PAVS maintains a weak price trend in the long, short, and medium terms.

Western Digital

• Western Digital Corp. (WDC) gained 4.97% as Morgan Stanley increased its price target on the stock to $650 per share. The firm cited strong demand for nearline enterprise storage, accelerating pricing, expanding margins, and improving operating leverage as key drivers of future growth.

• MarketDash's Edge Stock Rankings indicate that WDC maintains a strong price trend in the short, medium, and long terms, with a poor growth score.

La-Z-Boy

• La-Z-Boy Inc. (LZB) was 0.053% lower as analysts expect it to report earnings of 82 cents per share on revenue of $569.23 million, after the closing bell.

• MarketDash's Edge Stock Rankings indicate that LZB maintains a strong price trend in the short, long, and medium terms, with a poor quality score.

Cues From Last Session

Information technology, communication services, and consumer discretionary stocks recorded the biggest gains on Monday, pushing U.S. stocks higher. Energy and real estate stocks, however, bucked the overall market trend and closed lower.

Insights From Analysts

LPL Financial maintains a positive but cautious outlook for the U.S. economy and stock market amid a shifting macroeconomic backdrop. The firm's Strategic and Tactical Asset Allocation Committee (STAAC) currently recommends a "tactical equity overweight and fixed income underweight."

While LPL highlights a "broadly healthy fundamental landscape" for the long term, it anticipates near-term "bouts of volatility until the macro backdrop begins to improve," particularly as geopolitical situations like the one in the Strait of Hormuz resolve.

A major catalyst for the 2026 market is a massive wave of high-profile initial public offerings (IPOs) fueled by an "improved risk appetite" and a "healthier macro backdrop." This includes mega-cap artificial intelligence companies like OpenAI and Anthropic. However, LPL warns that this influx could test the market, shifting the narrative from "AI capex is funded by profits" to "AI growth requires continuous capital."

To navigate these choppy waters, LPL favors a "defensive factor tilt." Sector-wise, it remains overweight on industrials and energy, noting that "oil prices may stay higher for longer than markets currently anticipate," serving as a crucial hedge against Middle East flare-ups.

Upcoming Economic Data

Here's what investors will be keeping an eye on Tuesday.

• May's import price index, import price index minus fuel, housing starts, and building permits data will all be released by 8:30 a.m. ET.

Commodities, Crypto, And Global Equity Markets

Crude oil futures were trading lower in the early New York session by 2.66% to hover around $78.60 per barrel.

Gold Spot US Dollar rose 0.74% to hover around $4,341.24 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.19% lower at the 99.5560 level.

Meanwhile, Bitcoin (BTC) was trading 1.37% higher at $66,580.08 per coin, as per the last 24 hours.

Asian markets closed mixed on Tuesday, as Hong Kong's Hang Seng and China's CSI 300 indices declined, while Australia's ASX 200, India's Nifty 50, Japan's Nikkei 225, and South Korea's Kospi rose. European markets were higher in early trade.