Dow Jones futures climbed significantly on Tuesday morning, alongside S&P 500 futures and Nasdaq futures, while crude oil prices dropped due to ongoing optimism about the Iran deal. However, futures lost some of their gains from the holiday weekend after Iran promised retaliation for Monday's U.S. military attacks.
Marvell TechnologyMRVL, Dell TechnologiesDELL and Costco WholesaleCOST's earnings report is out this week. At the same time, the core PCE price index, which is the Federal Reserve's preferred measure of inflation, is expected.
Marvell and Dell stocks are extending from their purchase levels, as both AI-related stocks saw early gains on Tuesday. Costco stock declined late last week just under a buy point, with the shares remaining quiet before the market opened.
The stock market moved upward last week following a decline in crude oil prices and Treasury yields, fueled by optimism about a potential agreement with Iran. The Dow Jones reached a record high on Friday. Several major stocks experienced positive recoveries.
Marvell's stock is on theIBD 50.
Dow Jones Futures Today
Dow Jones futures increased by 0.6% compared to fair value. S&P 500 futures rose 0.7%, while Nasdaq-100 futures surged 1.1%. Futures are now trading below their highest levels recorded over the extended weekend.
U.S. crude oil prices dropped almost 4% to just under $93 per barrel, although they remained above weekend's lowest levels. The 10-year Treasury yield decreased by a few basis points to 4.49%.
Keep in mind the action that took place during the nightDow futuresand elsewhere does not necessarily mean actual trading in the next regularstock market session.
Iran News
Over the weekend, expectations grew for a U.S.-Iran agreement that could restore access to the Strait of Hormuz. On Saturday, Trump forecasted a deal "soon." However, both parties remained firm on critical matters, such as Hormuz and Iran's nuclear program.
The United States announced on Monday that it carried out "self-defense" attacks against Iranian missile facilities and vessels attempting to lay mines in the Strait of Hormuz. On Tuesday, Iran's Revolutionary Guards warned of a "decisive retaliatory action" in response to any breach of the ceasefire.
Subscribe to IBD's Daily Newsletter on Investors.com
Stock Market Rally
The stock market surge retreated at the start of last week due to rising oil prices and Treasury yields, but the indexes rebounded as crude oil and yields declined. They ignored negative reactions to earnings from Dow components.NvidiaNVDA and WalmartWMT.
The Dow Jones Industrial Average rose 2.1% during last week's trading.stock market trading, breaking its February record high on Friday. The S&P 500 index increased by 0.9%, the Nasdaq composite rose 0.45%, and the small-cap Russell 2000 surged 2.7%, all nearing historic peaks.
The 10-year Treasury rate decreased by 2.5 basis points to 4.57% for the week, following a peak of 4.69% on Tuesday. On that day, the 30-year yield reached its highest point in almost 19 years.
U.S. crude oil prices dropped 4.4% to $96.60 per barrel.
What To Do Now
The stock market is experiencing a surge, with investors anticipating that a U.S.-Iran agreement could soon restore access to the Strait of Hormuz. While it's possible that developments may change, it's wise not to become overly optimistic, but for the time being, the bullish trend is dominant.
Continue searching for purchasing opportunities. Examine your stock portfolio, and consider removing underperforming stocks to free up capital for more promising investments.
Read The Big Pictureevery day to remain aligned with market trends and top-performing stocks and industries.
Please follow Ed Carson on Threads at@edcarson1971 and X/Twitter at @IBD_ECarsonfor stock market news and additional information.
YOU MIGHT ALSO LIKE:
Why This IBD Application Makes It Easier Search For Top Stocks
Looking to Earn Fast Gains and Minimize Major Losses? Try SwingTrader
IBD Digital: Access IBD's Exclusive Stock Lists, Resources, and Insights Now
Time the Market Using IBD's ETF Investment Strategy
Futures Increase Due to Optimism About Iran, Pare Gains Following U.S. Attacks
No comments:
Post a Comment