U.S. stock futures advanced on Tuesday, as the Dow Jones, S&P 500 and Nasdaq 100 indices rose, following Monday’s mixed close.
Meanwhile, Iran vowed retaliation after U.S. Treasury Secretary Scott Bessent expanded sanctions to sever Tehran’s economic lifelines, warning that “no one is above the reach of U.S. sanctions.” The escalating geopolitical friction and threats to Gulf energy chokepoints come as oil prices attempt to stabilize following a steep decline.
Meanwhile, the 10-year Treasury bond yielded 4.71%, and the two-year bond was at 4.24%. The CME Group’s FedWatch tool projections show markets pricing a 42.1% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.22% |
| S&P 500 | 0.33% |
| Nasdaq 100 | 0.64% |
| Russell 2000 | 0.47% |
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, were higher in premarket on Tuesday. The SPY was up 0.37% at $766.30, while the QQQ advanced by 0.69% to $711.21.
Consumer staples, utilities, and financial stocks led the gains on Monday, pushing most S&P 500 sectors higher, while energy and information technology shares faced the heaviest losses.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.26% | 53,417.16 |
| S&P 500 | -0.28% | 7,652.86 |
| Nasdaq Composite | -0.76% | 25,980.19 |
| Russell 2000 | -0.76% | 2,995.08 |
Veteran market strategist Ed Yardeni remained exceptionally bullish on the U.S. economy and stock market, maintaining his signature thesis that the country is experiencing a productivity-driven "Roaring 2020s."
Despite near-term volatility from rising Treasury yields, trade tensions, and rate debates, Yardeni projected the S&P 500 will hit 8,250 by year-end and reach 10,000 by the end of the decade.
Yardeni attributed this momentum to technology and resilient spending rather than mere market speculation. He argues that the market’s ongoing rally is fueled by genuine corporate performance, stating that the gains are driven by "FEMO" (Fabulous Earnings Momentum) rather than simple "FOMO" (Fear of Missing Out).
He viewed artificial intelligence and digital innovation as productivity “fairy dust” that cuts costs and expands profit margins across industries.
While acknowledging potential turbulence—such as sovereign debt pressures and policy shifts—Yardeni saw low odds of a credit-fueled downturn. He noted, "it’s credit crunches that are the killers" for economic expansions. Absent a severe credit event, he expected strong consumer capital and corporate earnings to sustain this long-term bull market.
Here’s what investors will be keeping an eye on Tuesday.
Crude Oil WTI futures were trading lower in the early New York session by 1.99% to hover around $83.32 per barrel.
Gold Spot US Dollar fell 0.49% to hover around $4,628.38 per ounce. The U.S. Dollar Index spot was 0.03% higher at the 99.0330 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 3.80% higher at $79,955.49 per coin over the last 24 hours.
Asian markets were mixed on Tuesday, as Australia’s ASX 200, South Korea’s Kospi, and Japan’s Nikkei 225 indices rose. Hong Kong’s Hang Seng, China’s CSI 300, and India’s Nifty 50 indices fell. European markets were higher in early trading.
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