US stock futures took a little tumble Tuesday, catching their breath after a robust rally on Wall Street driven by hopes that Washington and Tehran might be cooling off. Contracts linked to the S&P 500 and Dow slipped 0.1%, with Nasdaq 100 futures dipping below the baseline.
Meanwhile, oil prices plummeted, signifying a potential easing in hostilities. West Texas Intermediate crude plunged close to 10%, settling around $88 a barrel. Not far behind, Brent crude fell almost 11%, winding up just under $100.
Over the weekend, tensions ran high as President Trump threatened strikes on Iranian energy facilities if the Strait of Hormuz remained blocked. Iran wasn’t shy either, threatening U.S. assets, making everyone nervous about a possible escalation.
On Monday, spirits lifted when Trump mentioned “very good and productive” discussions with Iran aimed at dialing down the heat. Although, Iranian media quickly poured cold water, denying direct talks. Yet, that optimism was enough to boost markets, with Dow peaking over 1,100 points during the day.
Looking ahead, investors are shifting their focus to the upcoming U.S. manufacturing data and the tail end of earnings season. GameStop, always a wild card, is set to drop their report after the market closes.
Markets saw a shakeup globally as Estée Lauder announced its intention to acquire Puig, the Spanish beauty group. Stocks for Puig jumped 8% following the news. Check the report in The Wall Street Journal here.
Here’s what’s buzzing:
-
Gold is on a 10-day losing streak as tensions in Iran weigh in. Bloomberg explains the backdrop here.
-
Oil’s on the rise due to fears of the Iranian situation spreading. Dive into Bloomberg’s insights here.
Meanwhile, let’s not forget the Fed’s historical handling of oil price shocks. Yahoo Finance’s Jennifer Schonberger has a deep dive on how the Fed has and hasn’t acted here.
Stay tuned because markets, never a dull moment, always have surprises up their sleeve!
