(August 4): US stock index futures climbed in early Asian trading as cooling tensions in the Middle East and strong technology earnings buoyed equities. The yen steadied after its intervention-led gains.
Contracts for the Nasdaq 100 Index rose 0.2% after a Wall Street rally that saw a gauge of megacaps post its best day since March as Amazon.com Inc. topped a US$3 trillion valuation. Palantir Technologies Inc. gained in extended trading after raising revenue and income forecasts. The S&P 500 Index climbed 1.5%, finishing within striking distance of a record. Asian shares were set for a mixed open.
The yen held steady through the New York trading session after a sharp advance earlier sparked speculation authorities may have intervened to support the currency again after last week’s coordinated action between the US and Japan. The currency traded at 157.33 per dollar in early Asian trading Tuesday.
Cooling tensions in the Middle East sent oil lower and spurred a rally in bonds Monday. West Texas Intermediate slipped 0.2% to trade at US$80.20 per barrel. That extended a 5% drop in the previous session as President Donald Trump said current negotiations were Iran’s “last chance” after calling off a planned attack. The Treasury 10-year yield dropped six basis points to 4.68%.
Monday’s revival in US technology shares offered investors some relief, even as uncertainty in the Middle East and lofty AI valuations kept caution elevated. The next test comes with another busy week of corporate earnings, as investors look for evidence that heavy spending on AI is translating into stronger growth and profits.
“Earnings will remain the primary focus, with roughly 15% of the S&P 500 by market capitalization scheduled to report,” said Matt Orton, chief market strategist at Raymond James Investment Management.
In the US, of the 307 S&P 500 companies that have reported so far this season through Friday, 86% beat analysts’ forecasts for EPS. On sales, 68% of companies have positively surprised, while 15% missed.
SpaceX’s inaugural report as a public company is due on Tuesday. It’s also set the stage for one of the largest share unlocks in capital markets history, with as much as US$116 billion worth of stock becoming eligible for sale for the first time next month. Elon Musk’s company has fallen below its IPO price, closing on Monday at US$114.46.
Still, the on-again, off-again nature of US-Iran diplomacy may mean earnings and jobs data will have to do the heavy lifting for the bulls this week, according to Chris Larkin at E*Trade from Morgan Stanley.
In the countdown to a slew of jobs figures, data showed US manufacturing activity expanded in July at the fastest pace in more than four years as demand remained strong, production surged and firms added workers.
Forces that propelled US stocks to record highs this year remain “firmly intact” after a reset in retail investors’ speculative trading, according to Citadel Securities’s Scott Rubner.
“Markets are transitioning from a flow-driven environment back to one increasingly dictated by earnings, corporate demand, and the macroeconomic backdrop,” he wrote.
- Boeing Co. received sign off for the 737 Max 7 from the Federal Aviation Administration, ending a drawn-out certification process that was upended by two fatal crashes and quality lapses at the US planemaker.
- Marriott International Inc. said that room growth for 2026 would likely come in at the lower end of earlier guidance, driven by construction delays in the Middle East.
- Grab Holdings Ltd. raised its annual earnings and sales forecasts.
Some of the main moves in markets:
- S&P 500 futures were little changed as of 8:08 a.m. Tokyo time
- Hang Seng futures were little changed
- S&P/ASX 200 futures were unchanged
- The Bloomberg Dollar Spot Index was little changed
- The euro was unchanged at US$1.1509
- The Japanese yen was little changed at 157.32 per dollar
- The offshore yuan was little changed at 6.7584 per dollar
- The Australian dollar was little changed at US$0.6999
- Bitcoin fell 0.4% to US$63,489.84
- Ether fell 0.6% to US$1,856.02
- Australia’s 10-year yield advanced one basis point to 4.94%
- West Texas Intermediate crude was little changed
- Spot gold was little changed