
U.S. stock futures edged higher on Tuesday after the Dow Jones Industrial Average closed at a record high above the 52,000 mark, supported by easing geopolitical tensions following a pause in hostilities between the U.S. and Iran. S&P 500 and Nasdaq futures also posted modest gains as investor sentiment remained positive.
Monday’s rally saw the S&P 500 rise 1.%, the Nasdaq gain more than 2%, and the Dow advance 0.6%, boosted by a nearly 5% jump in Alphabet during its first trading session as a Dow component.
Asian markets were mixed, with Japan’s Nikkei posting gains while South Korea, Hong Kong, and Australia traded lower. Investors are now turning their attention to key U.S. economic data due later today, including the JOLTS job openings report, Chicago PMI, and consumer confidence figures, for further clues on the health of the U.S. economy.
Oil prices rose on Monday after the U.S. and Iran agreed to pause hostilities and allow commercial vessels to resume transit through the Strait of Hormuz. U.S. crude climbed to around $70.50 per barrel, while Brent crude rose to nearly $73, recovering from Friday’s losses.
In the forex market, The Japanese yen fell to its weakest level against the U.S. dollar since 1986. USDJPY reached 162.39. This raised expectations that Japanese authorities could intervene in the foreign exchange market.
Japanese officials reiterated that they are prepared to take decisive action if currency moves become excessive. However, analysts believe that while intervention could provide temporary support for the yen, it is unlikely to reverse its longer-term weakness. The currency continues to face pressure from the wide interest rate gap between Japan and the United States, which encourages investors to borrow cheaply in yen and invest in higher-yielding assets abroad.
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