U.S. equity futures were modestly higher on Tuesday as market participants prepared for the last trading session of both the first half of the year and the second quarter. Traders were balancing several moving parts: a reported push for talks between U.S. and Iranian officials in Qatar, a closely watched jobs openings report, and a major retailer’s earnings update that investors expect to scrutinize for signs of consumer demand.
By 03:10 ET (07:10 GMT), futures tied to the major U.S. indices were in positive territory. The Dow futures contract had gained 39 points, or about 0.1%. S&P 500 futures were up roughly 7 points, or 0.1%, while Nasdaq 100 futures increased by 67 points, or about 0.2%.
Markets reacted positively on Monday after a broad rebound in technology names. The sector recovered from last week’s concerns about the durability of heavy artificial intelligence infrastructure spending. A semiconductor stock tracker rose by roughly 3.8% after suffering its worst week since last April, when equities were unsettled following the announcement of sweeping U.S. tariffs. The S&P 500 snapped a five-session losing streak and, with one trading day left in the quarter, was on course for its strongest quarterly showing since a recovery from a pandemic-era downturn six years ago.
Elsewhere, a U.S. Supreme Court decision cleared the way for Federal Reserve Governor Lisa Cook to remain at her post as she challenges the Trump administration’s attempt to remove her over allegations of mortgage fraud. Market participants said the ruling helped defuse some concerns about political interference with the Fed, though it did not entirely eliminate worries over the central bank’s independence.
Potential U.S.-Iran talks in Qatar
Global attention shifted to the Gulf, where President Donald Trump indicated that U.S. officials would hold discussions with Iranian counterparts in Qatar. CNN reported that Trump’s envoy Steve Witkoff was traveling to Doha, though Iran had stated that no negotiations were scheduled in the immediate days ahead. Axios reported that Witkoff and Jared Kushner would meet with Qatari leaders and other officials, and that technical teams from the U.S. and Iran would hold separate talks with mediators from Qatar and Pakistan. CNN also reported that an expert Iranian delegation was expected to arrive in Doha later in the week.
The reported developments follow an interim agreement between Washington and Tehran to pause attacks in the Strait of Hormuz, after a spike in hostilities the previous week that threatened to undermine a fragile memorandum of understanding reached earlier in June. In the energy complex, Brent crude futures had fallen back toward pre-conflict levels in the wake of the interim understanding and were trading at around $73.38 a barrel.
Labor market readings take center stage
A packed economic calendar was also on investors’ radars. The U.S. Job Openings and Labor Turnover Survey for May - commonly referred to as JOLTS - was due on Tuesday and was forecast to show 7.280 million open positions, down from 7.618 million in April. The Conference Board’s measure of consumer confidence was scheduled for release the same day. Together, these reports are expected to offer early context ahead of the all-important U.S. nonfarm payrolls print on Friday. Policymakers and markets alike will be watching the sequence of data for clues on how an inflation-focused Federal Reserve may adjust interest rate policy over the remainder of 2026.
Nike earnings to highlight a thin slate
Among a relatively light roster of corporate results, Nike’s quarterly release was set to command attention. The sports apparel giant was due to report after U.S. markets closed on Tuesday, and analysts and investors were expected to scrutinize the company’s forward guidance for additional color on consumer demand. Nike has been undergoing a turnaround under CEO Elliott Hill, and the upcoming results were likely to be evaluated for signs of progress in that effort.
In March, Nike had warned that sales in the current quarter were expected to fall between 2% and 4%, citing weakening demand in important geographies including China, Europe, the Middle East and Africa. Earlier in the month, Nike named David Denton as its next chief financial officer. Hill described Denton as a "proven public-company CFO who knows how to help great consumer brands operate with discipline and invest to win," highlighting the importance of financial stewardship during the turnaround.
Chinese manufacturing edges higher
On the global growth front, China’s official manufacturing purchasing managers index edged above expectations in June, registering 50.3 compared with market forecasts of 50.2 and an outcome of 50.0 in the prior month. The data indicated modest expansion as export demand and elevated spending tied to artificial intelligence initiatives helped activity. However, the reading was only just inside expansion territory, underscoring lingering softness in domestic demand and weak consumer spending. The report also noted that activity had been supported chiefly by strong export orders, where overseas buyers had front-loaded purchases amid uncertainty over the Middle East and oil prices. The interim peace agreement between the U.S. and Iran and the return of oil to pre-conflict levels may reduce the impetus for such front-loading in coming months.
With the second quarter drawing to a close, market participants were parsing these overlapping narratives - geopolitics, labor market data, seasonal quarterly positioning, and corporate guidance - to form a view on near-term risk and the trajectory for the remainder of the year. Technology stocks and semiconductors, energy markets, consumer discretionary firms like Nike, and macro-sensitive sectors that respond to interest-rate expectations and global trade data were likely to remain in focus as traders and investors digested incoming releases and any confirmation of diplomatic engagement in Doha.