U.S. stock futures tumbled on Tuesday following Monday’s advances. Futures of the major benchmark indices were lower.
President Donald Trump said on Tuesday that the mortgage levels have reached the "lowest level in five years, adding that the "cost of new mortgage is down by $5000,” after he signed an executive order aimed at deregulating the U.S. mortgage market last week.
Meanwhile, on Monday, countries like Germany, Spain, and Italy rejected President Trump‘s call to deploy naval forces to open the Strait of Hormuz, citing a lack of authorization from the United Nations and NATO.
Meanwhile, the 10-year Treasury bond yielded 4.23%, and the two-year bond was at 3.68%. The CME Group's FedWatch tool‘s projections show markets pricing a 99.1% likelihood of the Federal Reserve leaving the current interest rates unchanged in March.
| Index | Performance (+/-) |
| Dow Jones | -0.43% |
| S&P 500 | -0.48% |
| Nasdaq 100 | -0.56% |
| Russell 2000 | -0.84% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Tuesday. The SPY was down 0.35% at $666.68, while the QQQ declined 0.48% to $597.50.
Stocks In Focus
Uber Technologies
- Uber Technologies Inc. (NYSE:UBER) rose 2.11% in premarket on Tuesday after the ride-hailing giant and Nvidia Corp. (NASDAQ:NVDA) announced an expansion of their autonomous-vehicle partnership.
- Benzinga’s Edge Stock Rankings indicate that UBER maintains a weaker price trend over the short, medium, and long terms, with a solid growth score.
Comtech Telecommunications
- Comtech Telecommunications Corp. (NASDAQ:CMTL) dropped 9.64% after posting mixed results for the second quarter after the closing bell on Monday.
- Benzinga’s Edge Stock Rankings indicate that CMTL maintains a weaker price trend over the short and medium terms but a strong trend in the long term, with a moderate value score.
Lululemon Athletica
- Lululemon Athletica Inc. (NASDAQ:LULU) was up 0.66% as analysts expect it to report earnings of $4.78 per share on revenue of $3.59 billion, after the closing bell.
- Benzinga’s Edge Stock Rankings indicate that LULU maintains a weaker price trend over the short, medium, and long terms, with a poor quality score.
Rhythm Pharmaceuticals
- Rhythm Pharmaceuticals Inc. (NASDAQ:RYTM) fell 4.31% as it announced that the phase 3 trial of an obesity drug did not meet its primary endpoints.
- Benzinga’s Edge Stock Rankings indicate that RYTM maintains a weak price trend over the short, medium, and long terms.
Cisco Systems
- Cisco Systems Inc. (NASDAQ:CSCO) was 0.63% lower even as it expanded its secure AI factory with NVIDIA to enable scalable, edge-to-data-center AI deployment with enhanced security.
- Benzinga’s Edge Stock Rankings indicate that CSCO maintains a strong price trend over the short, medium, and long terms, with a poor value score.
Cues From Last Session
Information technology, consumer discretionary, and communication services stocks recording the biggest gains on Monday led all S&P 500 sectors to a positive close, as U.S. stocks settled higher with the index gaining around 1% while oil prices pulled back.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.83% | 46,946.41 |
| S&P 500 | 1.01% | 6,699.38 |
| Nasdaq Composite | 1.22% | 22,374.18 |
| Russell 2000 | 0.94% | 2,503.29 |
Insights From Analysts
LPL Research maintains a resilient outlook for the U.S. economy, despite ongoing “geopolitical uncertainty” and conflict in the Middle East. While oil prices have spiked due to a blockage at the Strait of Hormuz, Chief Economist Jeffrey Roach notes that the U.S. is “much less reliant on foreign energy than it once was.”
This structural shift, with the U.S. acting as a net exporter since 2020, suggests that current oil shocks “should not significantly alter the path of growth and core inflation in the longer run.”
Regarding the stock market, LPL's Strategic Tactical Asset Allocation Committee (STAAC) holds a “tactical neutral stance on equities.” Rather than retreating during volatility, the Committee is looking “for opportunities to potentially add equities at lower levels.”
Within domestic sectors, they maintain an overweight position in communication services and recently upgraded industrials due to “strong earnings momentum” and “AI-driven investment.”
While labor market weakening remains a risk, LPL expects the Federal Reserve to “likely cut rates twice later this year” as inflation gradually moves toward a 2.2% target.
Upcoming Economic Data
Here's what investors will be keeping an eye on Tuesday.
- February’s pending home sales report and March’s Home Builder Confidence Index data will be out by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 4.72% to hover around $96.82 per barrel.
Gold Spot US Dollar rose 0.31% to hover around $5,021.98 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.05% higher at the 99.7650 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.56% higher at $74,328.27 per coin, as per the last 24 hours.
Asian markets closed mixed on Tuesday, as Japan's Nikkei 225 and China’s CSI 300 indices fell. On the other hand, South Korea's Kospi, India’s Nifty 50, Australia's ASX 200, and Hong Kong's Hang Seng indices rose. European markets were also mixed in early trade.
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