U.S. stock index futures showed little movement on Tuesday as investors assessed fresh geopolitical tensions and rising bond yields before key economic data releases. S&P 500 futures held steady at 7,637.5 points by 03:20 ET, while Nasdaq 100 futures were unchanged at 29,112. Dow Jones futures edged 0.17% higher to 52,914, contrasting with a 1% decline in major indexes earlier in the session.
Geopolitical developments centered on renewed U.S. military action against Iran’s Islamic Revolutionary Guard Corps, including a second round of strikes this week. Washington maintained that the Strait of Hormuz remains open to commercial shipping, though Iran disputed this claim. Shipping data indicated traffic through the strait remains significantly below pre-conflict levels. President Donald Trump reiterated the possibility of "harder" strikes if Iran retaliated, with Kharg Island—an Iranian oil export terminal—identified as a potential target.
Bond markets reflected growing caution, with the U.S. 10-year Treasury yield approaching 5%, nearing a three-year high. Australia’s 10-year government bond yield climbed to its highest level in more than 15 years, while Japan’s 10-year yield hovered near 30-year peaks. The surge in yields weighed on equities, with Wall Street’s major indexes slipping into negative territory before paring losses.
Attention now turns to upcoming economic indicators, including the ADP private payrolls report, factory orders data, and the Federal Reserve’s Beige Book. The Beige Book, due Wednesday, will provide insights into economic activity, pricing pressures, and hiring trends across the Fed’s 12 districts. The Bank of Canada is widely expected to leave its benchmark rate unchanged at 2.25% at its policy meeting on Wednesday, with no immediate signals of a shift in stance.
