Stock futures traded mixed early Tuesday after Brent crude's 9.6% surge on a renewed U.S. blockade of Iranian shipping rattled Wall Street ahead of bank earnings and inflation data. Key Point
Stock futures traded mixed early Tuesday after Brent crude's 9.6% surge on a renewed U.S. blockade of Iranian shipping rattled Wall Street ahead of bank earnings and inflation data.
- Brent crude jumped 9.6% Monday, its biggest one-day gain since May 2020, after Washington reinstated its blockade on Iranian shipping.
- JPMorgan Chase, Goldman Sachs and Bank of America report earnings Tuesday alongside June inflation data.
- Nasdaq-100 futures edged higher early Tuesday while Dow futures slipped.
President Donald Trumpannounced Monday that the United States would reimpose its naval blockade on Iranian shipping through the Strait of Hormuz and charge a 20% fee on all cargo crossing the waterway. The blockade takes effect Tuesday at 4 p.m. ET.
Brent crude surged 9.6% to $83.30 a barrel, its largest single-day advance since May 2020, while West Texas Intermediate climbed 9.4% to $78.14. The S&P 500 lost 0.8% Monday, the Nasdaq Composite fell 1.6% and the Dow slipped about 0.3%. Early Tuesday, Dow futures pointed lower while Nasdaq-100 futures edged higher.
The United Nations' International Maritime Organizationrejected the fee plan, saying no legal basis exists for mandatory tolls on straits used for international navigation. Tanker traffic through Hormuz had already collapsed, falling 52% week over week as shipowners weighed rising insurance costs, according to Kpler data.
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JPMorgan Chase, Goldman Sachs, Bank of America, Wells Fargo and Citigroupreport second-quarter results before Tuesday's opening bell. Analysts expect S&P 500 profits grew 23.6% from a year earlier. June consumer price index data follows at 8:30 a.m. ET, with economists forecasting a 3.8% annual increase and a slight monthly decline.
Federal Reserve Governor Christopher Wallerwarned Monday that another hot core inflation reading could put rate hikes back on the table. New Fed Chair Kevin Warsh testifies before Congress the same day, delivering his first semiannual monetary policy report since taking the job.
Michael Graham, director of research and investment strategy at Canaccord Genuity, called Monday's session an outlier and said the pullback does not change a constructive view on large technology names, adding that earnings carry some upside.
The standoff traces back to Feb. 28, when U.S. and Israeli strikes on Iran choked off a waterway that once carried roughly 20% of the world's oil.
A Jun. 17 interim deal briefly restored shipments, and roughly 120 million barrels reportedly moved through the strait in the weeks that followed. Renewed attacks on commercial vessels unraveled that truce, and Trump declared the ceasefire over last week.
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