U.S. stock futures remained relatively stable on Tuesday, with minimal changes following a positive streak for the Dow Jones Industrial Average. While Dow futures experienced a slight increase, S&P 500 futures saw a marginal uptick, and Nasdaq 100 futures dipped slightly. This comes after a day of gains in major indexes driven by optimism over potential Federal Reserve rate cuts in response to weaker-than-expected job growth data for April.
Despite conflicting economic indicators, investors are eagerly awaiting the earnings report from Disney, as well as releases from UBS, BP, and Kenvue. The uncertainty surrounding the Fed’s monetary policy direction is reflected in the declining U.S. Treasury yields seen on Tuesday. Investors are closely analyzing the latest economic data and statements from central bank officials to gauge the future path of interest rates.
At 9:32 GMT, the 10-year Treasury yield has dropped by more than two basis points to 4.4610%, while the 2-year Treasury yield is down by over one basis point to 4.8095%. With ongoing speculation about potential rate cuts, investors are paying close attention to comments from Fed officials and are eagerly anticipating insights into consumer sentiment, which will play a key role in shaping market sentiment in the coming days.
Meanwhile, oil prices have experienced an increase on Tuesday as geopolitical tensions in the Middle East intensify. Israel’s military strikes in Gaza and the subsequent ceasefire negotiations have heightened market tension. Despite Hamas agreeing to a ceasefire proposal, Israel’s rejection has led to continued airstrikes, causing uncertainty in the oil market. Brent crude futures rose by 0.3% to $83.54 a barrel, while U.S. West Texas Intermediate (WTI) crude futures also inched up to $78.49. The focus in the oil market remains on geopolitical tensions and the potential impact of U.S. inventory reports on supply disruptions.