US stock futures stalled on Tuesday, hitting pause on their retreat as investors weighed apparent signs of progress toward an end to the US-Iran war.
Dow Jones Industrial Average futures (YM=F) nudged down 0.1%, while those on the tech-heavy Nasdaq 100 (NQ=F) fell 0.3%. Contracts on the S&P 500 (ES=F) shed 0.2%, coming off a second day of losses.
Stocks closed mixed on Monday as rises in oil prices kept worries about war-stoked inflation alive, amid the ongoing halt of tanker traffic through the Strait of Hormuz .
Optimism about a resolution crept into markets after President Trump said Monday that “serious negotiations” are taking place, and there is a “very good chance” of a deal on Iran’s nuclear program. He said that at the request of Gulf allies, he had halted military action against Iran that was scheduled to take place on Tuesday.
At the same time, gains in Treasury yields were seen as putting appetite for growth stocks at risk, with high-flying AI valuations particularly exposed.
The release of Nvidia (NVDA) earnings on Wednesday is the focal point of the week. Investors’ expectations for the world’s most valuable company are sky high. Moreover, Nvidia is a bellwether for the AI trade, which has become increasingly important in propping up markets amid inflation and geopolitical uncertainty.
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SpaceX IPO adds second Musk stock. It’s a problem for Tesla.
From Bloomberg:
For years, there was only one way for mom-and-pop investors to buy into Elon Musk’s vision: shares of Tesla (TSLA) Inc. That’s about to change — and it’s a serious risk for Tesla investors.
With the imminent initial public offering of Space Exploration Technologies Corp., better known as SpaceX (SPAX.PVT), the market will have an additional entry point for the “Muskonomy.”
Wall Street pros see investors’ attention and capital inevitably being siphoned away from Musk’s electric-vehicle maker and to his shiny new toy.
People gather on South Padre Island to watch SpaceX Starship Rocket on August 26, 2025. ·RONALDO SCHEMIDT via Getty Images
“This cannot be a positive for Tesla,” said Joe Gilbert, portfolio manager at Integrity Asset Management. “We believe that Musk’s focus will predominantly be lasered on SpaceX. Musk has proved to be able to balance multiple initiatives simultaneously in the past, but it feels like SpaceX is his new baby at the expense of Tesla.”
Indeed, the seemingly inherent competition between Tesla and SpaceX is a key reason why Musk is reportedly considering merging the two companies.
Asian markets drop as global bond rout intensifies economic stress
Reuters reports:
Asian shares were mixed Tuesday as uncertainty about what will happen with the Iran war roiled global markets.
Japan’s benchmark Nikkei 225 (^N225) lost 0.6% in morning trading to 60,433.79, erasing initial gains after the government reported that the economy grew for the second straight quarter in January-March, mainly due to better than expected consumer spending.
South Korea’s Kospi (^KS11) sank more than 4% in early trading and was down 3.5% at 7,249.73 by midday. Shares in Samsung Electronics slipped 3.8% and SK Hynix fell 4%, tracking losses in tech shares overnight on Wall Street.
Australia’s S&P/ASX 200 added 0.9% to 8,582.80. Hong Kong’s Hang Seng (^HSI) climbed 0.5% to 25,811.28, while the Shanghai Composite shed 0.3% to 4,121.11.
Oil falls following Trump comments on planned Iran strikes
Bloomberg reports:
Oil fell after President Donald Trump said he’d called off a strike on Iran planned for Tuesday following an appeal by Persian Gulf allies.
West Texas Intermediate (CL=F) for July dropped below $103 a barrel, after rising 3.3% on Monday, while Brent (BZ=F) closed above $112. Trump said in a social media post that the leaders of Saudi Arabia, Qatar and the United Arab Emirates asked “to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place.”
Oil has rallied on uncertainty about the talks, and the possibility that the near-total closure of the Strait of Hormuz will choke off Persian Gulf energy supplies for longer. Trump has repeatedly threatened renewed military action against Iran without following through, and Tehran didn’t immediately confirm renewed discussions.
“The president’s calling off tomorrow’s ‘scheduled’ attack is a positive,” said Mark Malek, chief investment officer at Muriel Siebert & Co. “The change of plans just shows how stochastic the situation is with negotiations.”
Trump said the US is prepared to attack if an acceptable deal isn’t reached but didn’t set a deadline.
