Stock futures slip as Middle East tensions escalate; traders await earnings and inflation data: Live updates
Stock futures slipped early Tuesday, following a losing session in which traders tried to weather increasing tensions between Iran and the U.S. Wall Street also awaited the release of key corporate earnings and fresh inflation data.
Dow Jones Industrial Average futures fell 187 points, or 0.4%. S&P 500 futures was down 0.3%, while Nasdaq-100 futures declined 0.4%.
The major U.S. stock benchmark dropped in regular trading after President Donald Trump said he would reinstate a blockade on Iranian shipping through the key Strait of Hormuz.
"We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran's ships or customers from entering or leaving," Trump said in a post on Truth Social.
The announcement sent oil prices surging and stocks sliding. The S&P 500 shed 0.8% on the day, while the Nasdaq Composite dropped 1.6%. The Dow pulled back by more than 100 points, or around 0.3%. Brent crude soared more than 9% for its biggest one-day gain since 2020.
Asia-Pacific markets traded mixed on Tuesday. Japan's benchmark Nikkei 225 was up 0.15%, while the Topix added 0.48%. South Korea's Kospi was up 1.24% and the small-cap Kosdaq lost 1.75%. Australia's benchmark S&P/ASX 200 was down 0.44%. Hong Kong's Hang Seng Index declined 0.54%, while China's mainland CSI 300 opened flat.
Treasury yields rose as investors feared higher oil prices could keep inflation elevated.
The volatility comes as Wall Street awaits the release of corporate earnings reports. JPMorgan Chase, Goldman Sachs and Bank of America are among the companies set to report Tuesday before the bell.
"Today was a little bit of an outlier. Everything was kind of down today. But in general, it doesn't really change the way we look at the earnings season. We feel pretty constructive about large tech in general. We do think earnings have some upside," Michael Graham, director of research and investment strategy at Canaccord Genuity, told CNBC's "Closing Bell: Overtime."
Analysts expect S&P 500 earnings grew by 23.6% in the second quarter from the year-earlier period, per FactSet.
Inflation data for June is also on deck Tuesday, with the latest consumer price index reading scheduled for 8:30 a.m. ET. Fed Chairman Kevin Warsh also will meet with lawmakers on Capitol Hill Tuesday as part of his two-day "Humphrey Hawkins" reports on monetary policy. It is the first time, the new Fed chief will present the central bank's semiannual reports.
China exports in June jump at fastest pace since 2021 as AI boom, tariff rush lift trade
China exports in June rose 27% from a year earlier in U.S. dollar terms, the strongest since October 2021, customs data showed Tuesday, quickening from the 19.4% gain in May and sharply beat economists' estimates for a 18.2% growth.
Imports grew 36% in June, the largest jump since June 2021, gaining pace from the 27.4% growth in May and beating economists' forecast for a 24% growth. The trade surplus stood at $125.6 billion in June.
Investors are now looking to an expected Politburo meeting in late July for clues on stimulus that could shape policy for the rest of the year, although analysts expect no meaningful stimulus unless growth slows more sharply, given resilient exports and Beijing's focus on curbing excess factory capacity to fight deflation.
China is expected to release its gross domestic product growth for the second quarter on Wednesday.
— Anniek Bao
Gold gains, Treasury yield up amid concerns over renewed U.S.-Iran hostilities
Traditional safe-haven assets traded mixed Tuesday, as investors continue to keep an eye on the latest developments in the Middle East after tensions between the U.S. and Iran flared up.
The 10-year U.S. Treasury yield rose about 2 basis point to 4.626%, while spot gold rose 0.4% to $4,015.82 an ounce. Silver was flat at $57.68 per ounce.
—Justina Lee
SK Hynix South Korean shares extend declines to fall 8%
Shares of SK Hynix extended losses on Tuesday, falling over 8% in Seoul after posting a record decline in the previous session, as investors continued to unwind positions following the chipmaker's Nasdaq debut.
Jung In Yun, founder and chief executive officer at Fibonacci Asset Management, told CNBC in an email that the sharp decline reflected a combination of profit-taking, ADR-related arbitrage and broader risk aversion toward South Korean equities, rather than a fundamental shift in SK Hynix's outlook.
"The ADR itself was not the main cause, but it accelerated short-term positioning. Investors who had benefited from the strong run-up used the successful ADR debut as an opportunity to lock in gains," he said.
—Lee Ying Shan
Oil gains as Mideast tensions and Hormuz toll prospects raise supply worries
Oil prices rose on Tuesday after U.S. President Donald Trump announced plans to impose shipping fees in the Strait of Hormuz and reinstate a blockade of Iranian ports, raising concerns over potential disruptions to global crude supplies.
U.S. West Texas Intermediate futures for August delivery rose 1.14% to $79.1. International benchmark Brent crude futures for September delivery climbed 0.79% to $83.97, extending gains after advancing 9.6% in the previous session.
Trump said Monday that the U.S. will levy fees on ships transiting the Strait of Hormuz, charging "at the rate of 20% on all cargo shipped," after describing the United States as the "guardian" of the vital oil transit route.
—Lee Ying Shan
Singapore’s economy expands 5.7% in the second quarter, beating expectations
Singapore's economy expanded 5.7% in the second quarter, topping market expectations, on the back of strong growth in the manufacturing sector.
Growth was higher than the 5.5% expected by economists polled by Reuters, but lower than the 6.3% seen in the first quarter, according to a release from the country's Ministry of Trade and Industry.
The goods sector expanded 10.4% from the 8.4% in the previous quarter, while growth in the services sector slowed to 4.6% from 6.2% in the first quarter.
The advance GDP data comes as Singapore's central bank prepares to announce its quarterly monetary policy decision later this month.
—Lim Hui Jie
Asia-Pacific markets fall as Trump’s Hormuz shipping fees, Iran blockade rattle investors
Asia-Pacific markets opened lower Tuesday after U.S. President Donald Trump proposed to charge a fee from ships passing through the Strait of Hormuz and reinstated a blockade of Iranian ports.
Japan's benchmark Nikkei 225 fell 1.17%, while the Topix declined 0.51%. South Korea's Kospi was down 2.01%, while the small-cap Kosdaq lost 1.8%.
Australia's benchmark S&P/ASX 200 traded 0.29% lower at the open.
—Lee Ying Shan
Asia markets set to open lower as Trump escalates Iran conflict; proposes Hormuz shipping fees
Asia-Pacific markets were set to open lower Tuesday after U.S. President Donald Trump proposed to impose shipping fees in the Strait of Hormuz and restarted a blockade of Iranian ports, escalating the conflict with Tehran.
Japan's benchmark Nikkei 225 is set to open lower, with the futures contract in Chicago at 67,055 against the index's last close of 67,242.73.
Futures for Australia's benchmark S&P/ASX 200 last traded at 8,775 compared to its close of 8,808.5.
Futures for Hong Kong's Hang Seng index stood at 24,158, lower than its last close of 24,213.72.
Trump said in a Truth Social post that the U.S. will reimpose its blockade of Iranian ports near the strait, the epicenter of the U.S.′ rapidly re-escalating war with Tehran.
The U.S. has rejected Iran's own plans to charge tolls to ships passing through the strait, which maritime experts, regulators and even top Trump administration officials have said are illegal under international law.
—Lee Ying Shan
What to expect from the June CPI report
Economists polled by Dow Jones expect consumer goods prices fell by 0.2% in June, putting headline inflation at a 3.8% rate. The decline is due to a pullback in energy prices during the month, as crude plunged 25% in June.
When it comes to core prices, which strip out food and energy, CPI is expected to have risen by 0.2% with an annual rate of 2.8% — well above the Fed's 2% target.
— Jeff Cox
U.S. launches strikes against Iran for third consecutive night, CENTCOM says
U.S. Central Command said Monday evening that the U.S. launched attacks against Iran for the third straight night, as tensions between the two countries continue to escalate.
"These strikes will continue imposing a heavy cost on Iranian forces and degrade their ability to attack innocent civilians and commercial shipping in the Strait of Hormuz," CENTCOM said in a post on X.
— Fred Imbert
Brent sees biggest daily jump since 2020
Brent crude recorded its biggest one-day gain in more than six years on Monday.
The international benchmark's September contract rose 9.6%. The last time it saw a bigger daily advance was in May 2020, when it climbed nearly 14%.
Brent ended Monday at $83.80 per barrel, its highest settle in about a month.
— Alex Harring, Chris Hayes
Stock futures open little changed
Dow Jones Industrial Average futures fell just 15 points. S&P 500 futures hovered just below the flatline along with Nasdaq-100 futures.
— Fred Imbert