U.S. stock futures point lower as Middle East risks rise
U.S. stock futures trend lower Tuesday as traders weigh heightened Middle East geopolitical risks, rising bond yields, and a heavy slate of earnings and economic data.
S. stock futures trended lower early Tuesday as Wall Street digested heightened geopolitical risks in the Middle East and evaluated equity valuations against rising bond yields. The Polymarket (CRYPTO: POL) crowd is leaning heavily bearish for the Aug. 18 trading session.
” contract currently reflects a 27% chance of a higher open. Why That Number Matters Traders are confronting a surge in Middle East tensions and an influx of critical retail earnings and economic data: Lower Index Futures: Equity futures are pointing to a negative open. 76%. 24%.
Geopolitics & Energy: President Donald Trump rejected extending a 60-day temporary ceasefire with Iran that expired Monday, without a broader peace agreement. In response, a senior Iranian official threatened that Tehran would shift to a “fully offensive” military posture if diplomatic efforts fail, escalating risks around the critical Strait of Hormuz. S. 20 a barrel.
Earnings & Eco Data: Investors are awaiting earnings from major retail and tech names on Tuesday, including The Home Depot Inc. (NYSE: HD ) and Baidu Inc. (NASDAQ: BIDU ). m.
m. m. ET. The Bull Case and Market Outlook While geopolitical risks weigh on futures, the underlying valuation of equities might still be appealing.
S. Treasury bond yield—may be working again now that the bond market is no longer manipulated by the Fed’s quantitative easing programs. 4) has narrowed dramatically. Despite the recent rise in the 10-year Treasury bond yield, the S&P 500 remains slightly undervalued under this model.
68% last week, the fair-value price of the S&P 500 was 8,300. How the Previous Bet Played Out The Aug. ” The contract recorded $65,999 in total trading volume. On Monday, the SPDR S&P 500 ETF Trust (NYSE: SPY ) and Invesco QQQ Trust ETF (NASDAQ: QQQ ), which track the S&P 500 and Nasdaq-100, respectively, closed lower.
87. 19 on Monday. Read Also: Jim Cramer Slams Trump Team for Blocking Nvidia’s China Chip Sales: ‘So Ill-Advised’ as Beijing Pushes for AI Dominance Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. Photo courtesy: Shutterstock