Wall Street opened in positive territory on Tuesday, with the Dow Jones Industrial Average climbing roughly 100 points, as tentative signs of progress in US-Iran relations helped calm nerves ahead of a crucial batch of inflation data. The S&P 500 edged up 0.05%, while the Nasdaq Composite was nearly flat at the start of trading.
Investor sentiment got a boost after Pakistan's Defence Minister Khawaja Asif told Bloomberg News that recent signals pointed toward a potential peace agreement between Washington and Tehran. That followed comments from Qatar's foreign ministry indicating that talks between Iran and Oman had reached an advanced stage. The developments come after a volatile start to the week, when oil prices spiked about 5% on uncertainty over the reopening of the Strait of Hormuz, a critical chokepoint for global crude shipments.
On Tuesday, oil prices eased as traders weighed the possibility of de-escalation. US West Texas Intermediate crude traded near $82 per barrel, while Brent hovered around $87. Despite the improved mood, negotiations remain complex. Iran has insisted on several conditions before the waterway can reopen and has ruled out direct talks unless previous commitments are honored.
Inflation data in focus
Beyond geopolitics, investors are bracing for key economic releases that could shape Federal Reserve policy. The July consumer price index (CPI) is due Wednesday, followed by producer price inflation (PPI) on Thursday. These reports follow last week's softer-than-expected jobs data, which raised concerns about slowing growth while higher energy costs keep inflation risks alive.
According to the CME FedWatch Tool, traders are almost evenly split on whether the Fed will raise rates in September or hold them steady. The mixed signals have left markets on edge, with the S&P 500 and Dow still hovering near record highs, while the Nasdaq sits about 2% below its all-time high after recovering from July's dip.
Corporate movers
Several stocks saw notable moves on Tuesday. Riot Platforms jumped nearly 11% after reports that it secured a $9 billion cloud computing deal with Anthropic. Intel slipped modestly, extending Monday's losses after pricing a $20 billion stock offering to fund its growth plans. Rocket Lab declined after appearing to delay the first launch of its Neutron rocket, a story we covered in our analysis of its backlog. Swiss sportswear maker On dropped more than 21% after quarterly sales missed expectations, while Hims & Hers Health fell on a wider-than-expected Q2 loss. Venture Global also edged lower after revenue came in slightly below estimates.
The market's resilience comes despite lingering concerns about oil-driven inflation, as highlighted in our recent piece on Brent's climb. With CPI and PPI on the horizon, traders are likely to remain cautious, but any further signs of diplomatic progress could provide additional support.
This article is for informational purposes only and does not constitute financial advice.
