Traders lock in gains after Monday’s strong advance
U.S. stock futures pointed to a modestly lower open on Tuesday as investors appeared ready to take profits after the previous session’s broad rally.
The cautious tone follows Monday’s powerful advance, which carried the Dow Jones Industrial Average to another record closing high and encouraged some traders to reduce exposure after recent gains.
Higher oil prices also weighed on sentiment, with U.S. crude futures rising 0.6% after jumping 2.2% during Monday’s session.
The latest gains in crude have been driven by uncertainty over possible diplomatic talks between the United States and Iran. President Donald Trump said negotiations were scheduled to take place in Qatar on Tuesday, while a spokesperson for Iran’s Foreign Ministry reportedly denied that any meeting had been arranged.
Investors await key U.S. economic reports
Despite the weaker outlook for the market open, investors are expected to remain cautious ahead of several important U.S. economic releases due later this week, including the closely watched monthly employment report.
Those figures are likely to shape expectations for the U.S. economy and the Federal Reserve’s next policy decisions.
Technology stocks led Monday’s market rebound
Wall Street ended Monday’s session firmly higher after overcoming early volatility, with all three major U.S. indices posting strong gains.
The Nasdaq climbed 522.53 points, or 2.1%, to finish at 25,820.14, while the S&P 500 gained 86.41 points, or 1.2%, to close at 7,440.43. The Dow added 306.63 points, or 0.6%, ending the day at a record 52,182.74 after giving back part of its intraday advance.
Technology companies were the primary driver of the rally, helping the Nasdaq recover following last week’s 4.6% decline.
Alphabet (NASDAQ:GOOGL) rose 4.8% after the Google parent company joined the Dow Jones Industrial Average.
Semiconductor stocks outperform broader market
Chipmakers were among the session’s strongest performers, lifting the Philadelphia Semiconductor Index by 3.8%.
Networking and computer hardware shares also posted solid gains, with the NYSE Arca Networking Index advancing 3.7% and the NYSE Arca Computer Hardware Index adding 2.4%.
Elsewhere, brokerage stocks weakened, dragging the NYSE Arca Broker/Dealer Index down 2.2%. Steelmakers, airlines and gold miners also declined, partially offsetting the technology-led rally.
Markets also remained focused on geopolitical developments after reports suggested the United States and Iran had agreed to temporarily suspend hostilities following weekend military exchanges.
President Donald Trump later stated on Truth Social that Iran had requested a meeting in Doha, Qatar.
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