U.S. equity futures traded modestly higher on Tuesday as markets headed into the final trading session of both the second quarter and the first half of the year. Investors are monitoring reports of potential negotiations between the United States and Iran, while a busy economic calendar and Nike’s quarterly earnings are also in focus.
Markets prepare for quarter-end trading
At 03:10 ET (07:10 GMT), futures on the Dow Jones Industrial Average were up 39 points, or 0.1%. S&P 500 futures gained 7 points, or 0.1%, while Nasdaq 100 futures advanced 67 points, or 0.2%.
Wall Street closed higher on Monday, led by a recovery in technology shares after concerns over artificial intelligence infrastructure spending weighed on the sector last week. Semiconductor stocks rebounded around 3.8%, recovering from their weakest weekly performance since April last year.
The rally allowed the S&P 500 to end a five-session losing streak and left the index on course for its strongest quarterly gain since the post-pandemic recovery.
Investor confidence also improved after the U.S. Supreme Court ruled that Federal Reserve Governor Lisa Cook could remain in office while legal proceedings continue regarding efforts by the Trump administration to remove her. The decision helped reduce concerns over the Fed’s political independence.
Possible U.S.-Iran meeting remains in focus
Attention has shifted to Qatar after President Donald Trump said U.S. representatives would meet Iranian officials there.
CNN reported that special envoy Steve Witkoff is travelling to Qatar, although Iranian authorities insist that no formal negotiations have been scheduled in the coming days.
According to Axios, Witkoff and Jared Kushner will meet Qatari officials, while technical delegations from both the United States and Iran are expected to hold separate discussions with mediators from Qatar and Pakistan. An Iranian expert delegation is also expected to arrive in Doha later this week.
The diplomatic activity follows reports that Washington and Tehran have agreed to halt attacks in the Strait of Hormuz. Brent crude was trading around US$73.38 a barrel after falling back to levels seen before the recent conflict.
Economic releases take centre stage
Investors are also awaiting a series of important U.S. economic reports.
Tuesday’s focus will be the May JOLTS job openings report, with economists forecasting vacancies to decline to 7.28 million from 7.618 million in April.
The Conference Board’s consumer confidence survey will also be released later in the session.
These reports are expected to provide additional insight ahead of Friday’s closely watched non-farm payrolls report, which could influence the Federal Reserve’s interest rate outlook.
Nike results expected after the close
Nike (NYSE:NKE) is due to report quarterly earnings after the closing bell, with investors looking for further signs that Chief Executive Elliott Hill’s turnaround strategy is gaining momentum.
In March, Nike warned that quarterly sales would decline by between 2% and 4%, reflecting weaker demand across China, Europe, the Middle East and Africa.
Earlier this month, the company appointed David Denton as Chief Financial Officer. Hill described him as a “proven public-company CFO who knows how to help great consumer brands operate with discipline and invest to win.”
Chinese factory activity improves
Official figures released on Tuesday showed that China’s manufacturing sector expanded slightly faster than expected in June.
The official manufacturing PMI rose to 50.3 from 50.0 in May, exceeding forecasts of 50.2.
Export demand remained the main driver of growth, although analysts believe the recent boost could fade as geopolitical tensions ease and oil markets stabilise.
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