It's shaping up to be a cautious start on Wall Street Tuesday. Stock futures are pointing lower across the board, with the Dow, S&P 500, and Nasdaq 100 all in the red. The mood is being dragged down by fresh geopolitical worries after President Donald Trump rejected extending a temporary ceasefire with Iran. Tehran's threat to adopt a "fully offensive" military posture has markets on edge, especially when it comes to energy supplies and the Strait of Hormuz.
Oil prices are reflecting that tension, with Brent crude trading above $91 a barrel. That's a level that tends to make investors nervous, as higher energy costs can ripple through the economy. Meanwhile, the 10-year Treasury yield is at 4.74%, and the two-year is at 4.19%. According to the CME Group's FedWatch tool, markets are pricing in a 36.6% chance that the Federal Reserve will hike rates at its September meeting. So, the macro picture is a mix of geopolitical risk and monetary policy uncertainty.
Here's a quick look at how the major indices are performing in premarket trading:
The ETFs that track these indices are also lower. The SPDR S&P 500 ETF Trust (SPY) is down 0.50% at $768.80, and the Invesco QQQ Trust ETF (QQQ) has slipped 1.12% to $721.68.
Flexsteel Industries
- Flexsteel Industries Inc. (FLXS) was up 9.02% after posting better-than-expected fourth-quarter results. The furniture maker reported earnings of $1.33 per share, beating the analyst consensus of $1.09, and sales of $115.365 million, topping the $109.663 million estimate. The stock also shows a strong price trend in the short, long, and medium terms, with a moderate growth score.
Super League Enterprise
- Super League Enterprise Inc. (SLE) declined 12.25% after surging 33.04% higher on Monday. The company reported an adjusted loss of $1 per share, which beat the consensus estimate of a $1.78 loss, but revenue of $3.01 million came in below the expected $3.40 million. The stock's price trend is weak across all timeframes, according to market data.
Fabrinet
- Fabrinet (FN) plunged 9.11% despite beating top- and bottom-line estimates for the fourth quarter. The stock has a strong price trend in the long and short terms but a weak trend in the medium term, with a good quality score.
Home Depot
- Home Depot Inc. (HD) was 0.33% higher as it prepares to report earnings before the opening bell. Analysts expect earnings of $4.73 per share on revenue of $47.27 billion. The stock shows a strong price trend in the short and medium terms but a weak trend in the long term, with a bad value score.
Cues From Last Session
Monday was a rough day for stocks. Communication services, consumer staples, and financial stocks led most S&P 500 sectors lower, while energy stocks bucked the trend to close higher. The Dow lost over 250 points amid rising Middle East tensions. Here's how the major indices closed:
Insights From Analysts
Despite the recent turbulence, LPL Financial is keeping a positive outlook on the U.S. stock market and economy. The firm's Strategic and Tactical Asset Allocation Committee maintains a "tactical equity overweight," projecting that "an improving macro backdrop and sustained AI-driven earnings growth will continue to support the broader equity market through the remainder of 2026."
LPL sees clear signs of stabilization in the broader economy. The U.S. continues to act as a primary global growth engine, with business activity strengthening as reflected in expanding Purchasing Managers' Index (PMI) data. Recent economic indicators, including cooling inflation and soft employment reports, have shifted market expectations toward an extended monetary pause. LPL notes that "the Fed's most likely next move is to keep the federal funds rate unchanged," which has bolstered investor risk appetite and helped push equities to new highs.
While LPL emphasizes high-quality assets due to tight credit spreads, its overall view signals confidence that strong fundamental growth drivers will keep the U.S. expansion on solid ground.
Upcoming Economic Data
Investors have a busy day of economic data ahead. Here's what's on tap for Tuesday:
- July housing starts and building permits, along with import and export prices, will be released by 8:30 a.m. ET.
- July's industrial production and capacity utilization data will be out by 9:15 a.m., and July's pending home sales index data will be released by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session, up 0.74% to hover around $84.36 per barrel. Gold Spot US Dollar fell 0.53% to hover around $4,393.21 per ounce. The U.S. Dollar Index spot was 0.01% higher at the 99.6500 level.
In cryptocurrencies, Bitcoin (BTC) was trading 1.40% higher at $64,198.86 per coin over the last 24 hours.
Global markets were mixed on Tuesday. Hong Kong's Hang Seng and China's CSI 300 indices rose, while Australia's ASX 200, India's Nifty 50, Japan's Nikkei 225, and South Korea's Kospi indices fell. European markets were mostly lower in early trading.
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