As the market wrapped up a first half and second quarter marked by geopolitical instability and AI infrastructure investment uncertainty, stock futures steadied on Tuesday. Dow futures rose 0.2% and S&P 500 futures 0.1%. As of 06:09, Nasdaq 100 futures increased 35 points, likewise 0.1%. On Monday, technology stocks recovered from last week’s concerns about AI chip and data center spending influencing Wall Street. AI debate pits hyperscalers against pick-and-shovel vendors. Recently, investors have prioritised cash flow, favouring cash flow stocks above others. Analysts debate whether this trade is too prominent.
As the Supreme Court denied President Donald Trump’s bid to oust Federal Reserve Governor Lisa Cook for mortgage fraud, traders were relieved. Payrolls may reveal more about the economy and interest rates this week. Before U.S. markets close on Friday for Independence Day, the report will be released on Thursday. Last session, the S&P 500 ended a five-session losing streak. On the last day of the second quarter, the benchmark index might post its best quarterly performance since the pandemic six years earlier. Tech-heavy Nasdaq Composite is expected to gain 20%, its biggest rise since the second quarter of 2020. For the year, the S&P 500 is up 8.5% and the Nasdaq 11.1%. Over the past three months, the U.S.-Israeli onslaught on Iran has affected global stocks. The US and Iran signed a framework memorandum of understanding last month, easing Middle East tensions but leaving major concerns unresolved.
Researchers and politicians warn that an inflationary boom in the months after the war may continue to affect the global economy. Oil prices are nearing pre-conflict levels. Trading through contradicting Strait of Hormuz signals. Iran has closed the strait that transports a fifth of the world’s oil to tanker traffic, but the White House says it’s open. Tehran wants pipeline influence. The U.S. and Iran have exchanged strait strikes on the topic in recent days, although media reports say the frequency has decreased. Pakistan stated Tuesday that technical talks between the U.S. and Iran will begin in Qatar, but high-level negotiations are uncertain.
Trump says American and Iranian officials would meet in Doha today. Sources say Trump ambassador Steve Witkoff is on his way to the Gulf. Strategy shares fell premarket after Michael Saylor’s Bitcoin-acquiring firm broke its promise to never divest from the biggest cryptocurrency. Investors remained interested in AI infrastructure builders. Before the market opened, Super Micro, Sandisk, and Applied Materials stock prices rose. After U.S. markets closed, Nike will report quarterly profits.