U.S. stock index futures edged higher on Tuesday as markets reacted to fresh geopolitical developments and trade policy shifts. The Dow Jones Industrial Average futures gained 0.2%, while the S&P 500 and Nasdaq 100 futures advanced 0.3% and 0.6%, respectively.
The White House postponed until January 2027 a planned 50% tariff on Canadian goods, including automobiles, trucks and steel, after Ottawa vowed retaliatory measures. The delay follows failed negotiations to avoid the proposed levies, which had threatened to disrupt cross-border trade valued at over $700 billion annually.
Meanwhile, the U.S. and Israel intensified economic pressure on Iran, announcing expanded sanctions targeting financial networks linked to the country. Treasury Secretary Scott Bessent described the measures as an "economic attack" aimed at severing Iran’s global financial ties. President Donald Trump urged allied nations to cease interactions with Tehran, warning that entities facilitating transactions for Iran would face exclusion from the U.S. dollar system. The measures follow a joint military strike by the U.S. and Israel in late February.
Oil prices retreated as traders assessed the impact of the sanctions on global supply. Brent crude futures fell 0.6% to $91.58 per barrel, extending losses from the prior session when both Brent and West Texas Intermediate closed more than 2% lower. Analysts at ING noted that while the sanctions could disrupt Iranian oil exports, their market impact may be limited given uncertainty over Washington’s willingness to risk trade tensions with China, Iran’s largest energy buyer.
In corporate news, Intuit’s decision in May to slash its annual revenue outlook for TurboTax and cut 3,000 jobs by 17% continues to weigh on sentiment. The company cited a strategic shift toward AI-driven solutions as the rationale for the workforce reduction.
Bitcoin surged 4.0% to $80,415.70, briefly touching a three-month high of $81,220.40. The cryptocurrency has gained in eight of the last nine sessions, supported by strong inflows into spot Bitcoin ETFs and short-covering in derivatives markets. Analysts also cited growing fiscal concerns over the U.S. Treasury’s accelerated bond buyback program, which aims to curb rising yields.
