US stock futures edged higher on Tuesday positioning Wall Street for its strongest quarterly performance in six years as investor optimism surrounding , resilient corporate earnings and easing inflation continued to support risk appetite. Meanwhile, the US dollar strengthened, while the Japanese yen weakened to its lowest level since 1986.
The S&P 500 rose 0.2% in premarket trading, capping a remarkable quarter in which the benchmark index has rallied nearly 14% since the start of April.
As of 7:12 a.m. New York time, S&P 500 futures were up 0.2%, while Nasdaq 100 futures gained 0.4%. Dow Jones Industrial Average futures also traded 0.2% higher, indicating a steady start to the final trading session of the quarter.
“US futures are being supported by renewed demand for tech, with investors returning to the view that IT offers one of the few strong and reliable earnings-growth stories,” said Marija Veitmane, head of equity research at State Street Global Markets, according to Bloomberg.
“That makes any jitters in tech look like a buying opportunity, and I think that is what we are seeing after last week’s wobble.”
Global equities continued to build on recent gains as investors looked ahead to another earnings season expected to be fueled by sustained investment in artificial intelligence. Market participants believe a supportive macroeconomic environment, coupled with easing energy prices, could help contain inflationary pressures and underpin corporate profitability in the coming months.
European equities also advanced, led by gains in Abivax SA after positive updates from a clinical trial eased investor concerns. Asian markets ended higher as semiconductor stocks extended their recent rally.
In commodity markets, Brent crude slipped 0.3% to trade around $73 per barrel as oil shipments through the Strait of Hormuz accelerated. Adding to the bearish outlook, analysts at lowered their oil price forecasts for the second time in roughly two weeks, citing a faster-than-anticipated recovery in global supply. Strong US crude production and subdued demand from China were also flagged as factors that could contribute to excess supply in the market.
Despite the decline in oil prices, geopolitical developments remained firmly on investors’ radar. Markets are closely monitoring scheduled peace talks on Tuesday after Iran reiterated its intention to maintain control over maritime traffic through the Strait of Hormuz, a key global energy transit route. Oil prices continue to play a critical role in shaping inflation expectations, particularly as the Federal Reserve is widely expected to raise interest rates as early as September.
The US Treasury market was largely steady ahead of the release of the May Job Openings and Labor Turnover Survey (JOLTS), which is expected to provide fresh insights into labour market conditions and influence expectations for the Fed’s policy path.
Among individual stocks, space-related companies emerged as some of the biggest gainers in premarket trading, reflecting continued investor interest in the sector. Strategy Inc., led by Michael Saylor, slipped after Monday’s strong rally as Bitcoin retreated below the $60,000 mark.
Meanwhile, Microsoft Corp. traded modestly higher before the opening bell but remained on track to record its weakest monthly performance since December 2000, highlighting the mixed performance among large-cap technology stocks despite the broader market’s strong quarterly rally.