U.S. stocks were mixed on Tuesday, as the Dow Jones, S&P 500, and Nasdaq 100 index futures moved in different directions, following Monday's mixed close.
President Donald Trump said oil prices were "dropping like a rock" as he pointed to Iran wanting a settlement "as soon as possible," and said a peace deal "could happen" ahead of Tuesday's midterm elections.
Iranian President Masoud Pezeshkian said Supreme Leader Mojtaba Khamenei granted his government additional authority to pursue negotiations, adding, "We are striving to resolve the issue through dialogue." Reuters reported Tuesday that U.S. forces struck targets on Iran's Qeshm Island near the Strait of Hormuz, with American officials describing the strikes as defensive measures against threats to U.S. assets and commercial shipping.
Meanwhile, the 10-year Treasury bond yielded 4.91%, and the 2-year Treasury bond yielded 4.59%, at the last check. The CME Group's FedWatch tool projections show markets pricing in a 75.2% likelihood of the Federal Reserve hiking interest rates after its December meeting.
The SPDR S&P 500 ETF Trust (NYSE:SPY), the Invesco QQQ Trust ETF (NASDAQ:QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), which track the S&P 500 index, Nasdaq 100 index and Dow Jones Industrial Average, respectively, were mixed in premarket trading on Tuesday. The SPY was down 0.11% at $751.26, the QQQ advanced 0.20% to $682.44, and the DIA fell 0.54% to $516.51.
Palantir Technologies
- Palantir Technologies Inc. (NASDAQ:PLTR) was 5.13% lower in premarket trading on Tuesday despite reporting third-quarter 2026 earnings that beat estimates, with EPS of $0.44 on revenue of $2.31 billion versus estimates of $0.41 and $2.18 billion.
- MarketDash's Edge Stock Rankings indicate that PLTR maintains a negative price trend in the short term but a positive trend in the medium and long terms, with a poor value score.
Vertex Pharmaceuticals
- Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) was 0.61% higher in premarket trading on Tuesday after reporting third-quarter 2026 earnings that were a mixed result versus estimates, with EPS of $4.76 on revenue of $3.44 billion versus estimates of $4.82 and $3.42 billion.
- MarketDash's Edge Stock Rankings indicate that VRTX maintains a positive price trend in the short, medium, and long terms, with a strong momentum score.
Grab Holdings
- Grab Holdings Ltd. (NASDAQ:GRAB) was 8.22% higher in premarket trading on Tuesday after reporting third-quarter 2026 earnings that were a mixed result versus estimates, with revenue of $1.11 billion versus estimates of $1.07 billion.
- MarketDash's Edge Stock Rankings indicate that GRAB maintains a negative price trend in the short, medium, and long terms, with a strong growth score.
Advanced Micro Devices
- Advanced Micro Devices Inc. (NASDAQ:AMD) was 2.34% higher in premarket trading on Tuesday as analysts expect third-quarter 2026 EPS of $1.95 on revenue of $13.09 billion after the closing bell.
- MarketDash's Edge Stock Rankings indicate that AMD maintains a negative price trend in the short and medium terms but a positive trend in the long term, with a poor value score.
Cues From Last Session
U.S. stocks closed mixed on Monday, with consumer discretionary, financials, and materials leading and energy, information technology, and health care lagging. The Dow gained over 200 points, gaining 212.26 points.
Insights From Analysts
LPL Research said AI spending is increasingly shaping interest rates and credit markets as hyperscaler capital expenditures close in on "$1 trillion per year," turning what was largely an equity story into "a rates market story."
The firm said the AI buildout is "working against bondholders on two fronts at once" by keeping growth and inflation firm enough that "the Fed is hiking again," while also "flooding the long end of the bond market with corporate duration that competes with Treasuries for the same buyers."
LPL Research highlighted the scale of spending, saying the four largest hyperscalers are guiding to "roughly $730 billion of capital spending in 2026," up "about 78%" from "roughly $410 billion in 2025," and said even slower growth could still bring total spending to "$1 trillion."
It added that "any pause or slowdown is the most underappreciated upside catalyst for Treasuries heading into 2027," and argued the market sensitivity shows up in rates because "the market believes the economy can sustain a higher policy rate because AI investment is propping up demand."
Upcoming Economic Data
Here's what investors will be keeping an eye on Tuesday.
- September's JOLTS job openings and September's factory orders data will both 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 by 1.87% to hover around $98.26 per barrel. Meanwhile, Brent futures were trading higher in the early New York session by 1.86% to hover around $106.72 per barrel.
Gold Spot US Dollar fell 1.08% to hover around $3,905.18 per ounce. The U.S. Dollar Index spot was little changed at the 101.7658 level.
Meanwhile, Bitcoin (CRYPTO:BTC) was trading 0.29% higher at $76,894 per coin over the last 24 hours.
Asian markets were mixed on Tuesday, as Australia's ASX 200, India's Nifty 50, and Hong Kong's Hang Seng indices rose. South Korea's Kospi, China's CSI 300, and Japan's Nikkei 225 indices fell. European markets were lower in early trading.
