U.S. stock futures pointed lower on Tuesday, with the Nasdaq 100 leading the decline, as investors digested a fresh warning from President Donald Trump to Iran and braced for a busy week of economic data.
President Trump warned he will “do what I have to do” if Tehran fails to adhere to a newly negotiated peace roadmap, which triggered a 60-day U.S. waiver on Iranian sanctions, according to Reuters. Trump added that upcoming weapons inspections would enforce “nuclear honesty,” though Iranian officials denied that discussions regarding its nuclear program had begun.
The 10-year Treasury yield sat at 4.48%, while the two-year yield was at 4.19%. The CME Group’s FedWatch tool shows markets pricing a 67.9% likelihood that the Federal Reserve will leave interest rates unchanged at its July 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 lower in premarket on Tuesday. The SPY was down 1.47% at $733.46, while the QQQ declined by 2.73% to $717.78.
Catheter Precision
- Market data indicates that VTAK maintains a weak price trend in the short, medium, and long terms.
Infleqtion
- Infleqtion Inc. (INFQ) rose 3.10% after Trump signed two executive orders Monday aimed at accelerating quantum computing development and strengthening cybersecurity as Washington intensifies its competition with China in the race for quantum leadership.
- Market data indicates that INFQ maintains a strong price trend in the short, long, and medium terms.
Space Exploration Technologies
- Space Exploration Technologies Corp. (SPCX) fell 3.68%, continuing a multi-day decline for the popular space company, which listed on bourses June 12. With Monday’s drop, SpaceX has shed over $400 billion in valuation and fallen to the seventh most valuable company in the world with a market capitalization of around $2.04 trillion.
- Market data indicates that SPCX maintains a weak price trend in the short, medium, and long terms.
FedEx
- FedEx Corp. (FDX) rose 0.26% as analysts expect it to post quarterly earnings of $5.96 per share on revenue of $24.04 billion, after the closing bell.
- Market data indicates that FDX maintains a weak price trend in the short and medium terms but a strong trend in the long term, with a poor growth score.
Cues From Last Session
Most sectors on the S&P 500 closed on a positive note on Monday, with energy, real estate, and health care stocks recording the biggest gains. However, consumer discretionary and communication services stocks bucked the overall market trend, closing the session lower.
Insights From Analysts
LPL Financial maintains a cautiously optimistic economic outlook, noting that the broader macro environment is supported by solid underlying fundamentals.
In its recent Weekly Market Commentary, the firm highlights that a “steady, near-trend growth backdrop supported by investment and productivity gains” is keeping the economy resilient despite tight financial conditions.
Key structural drivers, such as ongoing capital spending in AI-related digital infrastructure and data centers, are expected to foster durable, less inflationary long-term expansion.
Regarding monetary policy and the stock market, LPL Financial closely monitors the Federal Reserve’s evolving strategy under new FOMC Chair Kevin Warsh. The Fed’s updated projections, which indicate higher median interest rates, initially triggered a “negative reaction in both the equity and bond markets.”
However, LPL Research remains strategic. The LPL Research Strategic and Tactical Asset Allocation Committee (STAAC) “maintains its recommendation for a tactical equity overweight and fixed income underweight.”
To navigate immediate macroeconomic uncertainties, including fluctuating oil prices caused by Middle East geopolitical tensions, the committee implements a “defensive factor tilt given our expectation for bouts of volatility.”
Upcoming Economic Data
Here’s what investors will be keeping an eye on Tuesday.
- June’s flash U.S. manufacturing and services PMI data will be released by 9:45 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 0.42% to hover around $73.55 per barrel.
Gold Spot US Dollar fell 1.94% to hover around $4,109.94 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.14% higher at the 101.1620 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 2.79% lower at $62,299.54 per coin, as per the last 24 hours.
Asian markets closed lower on Tuesday, as Hong Kong’s Hang Seng, Australia’s ASX 200, China’s CSI 300, India’s Nifty 50, Japan’s Nikkei 225, and South Korea’s Kospi fell. European markets were lower in early trade.
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