Futures tied to the Dow Jones Industrial Average rose 107 points, or 0.4%, while S&P 500 and Nasdaq-100 futures were up less than 0.1%.
The gains followed a strong rally on Monday, when investor sentiment improved after the United States and Iran agreed to pause hostilities. The S&P 500 advanced 1.18%, while the Nasdaq Composite climbed 2.07%, extending the market’s recent momentum.
The easing of tensions has also helped calm concerns over global energy supplies. Following the agreement to allow commercial vessels to pass through the Strait of Hormuz, oil flows through the strategic waterway recovered faster than expected, shifting market focus from fears of supply disruptions to the prospect of excess crude supply.
Brent crude traded below $74 a barrel, while US West Texas Intermediate (WTI) crude slipped below $71, putting oil prices on course for a quarterly decline.
The latest gains have positioned Wall Street for a robust first-half performance. The Dow is up 8.6% so far this year, on track for its strongest first-half gain since 2021. The S&P 500 has advanced more than 8%, while the Nasdaq Composite has outperformed with a gain of 11.1%, supported by continued strength in technology stocks.
Investors are also keeping a close watch on currency markets, where the US dollar has remained firm. The greenback’s rally has pushed the Japanese yen to its weakest level in four decades, fuelling speculation that Japanese authorities could intervene to support the currency.
Meanwhile, analysts at HSBC warned the dollar’s rally could accelerate further if the US Federal Reserve signals it remains prepared to tighten monetary policy, cited CNBC.
