Stock Market Update

Equity futures point to a higher opening this morning as semiconductor stocks look to extend Monday's rebound effort following a sharply lower end to the previous week.

The group led the major averages to a mostly higher finish yesterday, though broader market strength steadily deteriorated throughout the session.

This morning, the market is supported by another round of cooling tensions on the geopolitical front, with President Trump telling reporters that a deal with Iran could be reached in two to three days, with the Strait of Hormuz opening immediately under the deal, according to CNBC. Crude oil is currently down $1.87 (-2.1%) to $89.43 per barrel. 

Investors will have a few economic data releases to assess today, including the April trade balance at 8:30 a.m. ET (Briefing.com consensus -$55.5 billion) and May existing home sales at 10:00 a.m. ET (Briefing.com consensus 0.6%). The NFIB Small Business Optimism Index contracted to 95.3 in May from the prior reading of 95.9.

In corporate news:

• Perplexity is planning an IPO in 2028, according to CNBC.
• Apollo (APO 127.57, +0.0, +0.0%) and Blackstone (BX 115.09, +0.90, +0.8%) are finalizing a $35 billion private credit deal to fund growth at Anthropic, according to Financial Times.
• Nuvalent (NUVL 122.76, +34.27, +38.7%) is set to be acquired by GSK (GSK 50.44, -0.19, -0.4%) for $124 per share in cash.
• NVIDIA (NVDA 209.41, +0.77, +0.4%) CEO Jensen Huang recommended investors purchase Qualcomm, according to Investing.com.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday with South Korea's Kospi (+8.2%) reclaiming the bulk of its loss from Monday. Japan's Nikkei: +2.2%, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: +1.3%, India's Sensex: +0.5%, South Korea's Kospi: +8.2%, Australia's ASX All Ordinaries: -0.4%.

In news:

• China reported strong trade figures for May with above-consensus import and export growth.
• China's government has pushed for increased local bond issuance this month, according to China Securities Journal.
• There has been some increased focus on the role of growing margin debt in South Korea's chip-fueled rally.
• Bank Indonesia unexpectedly raised its policy rate by 25 basis points to 5.50%.

In economic data:

• China's May trade surplus $105.43 bln (expected $92.10 bln; last $84.80 bln). May Imports 27.4% yr/yr (expected 25.0%; last 25.3%) and Exports 19.4% yr/yr (expected 15.0%; last 14.1%)
• Japan's May Machine Tool Orders 37.4% yr/yr (last 45.1%)
• South Korea's Q1 GDP 1.7% qtr/qtr, as expected (last -0.1%); 3.6% yr/yr, as expected (last 1.6%)
• Australia's June Westpac Consumer Sentiment -2.9% (last 3.5%). May NAB Business Confidence -14 (last -23) and Business Survey 3 (last 3)
• New Zealand's Q1 Manufacturing Sales Volume 3.6% qtr/qtr (last -0.5%)

Major European indices are mostly higher while the U.K.'s FTSE (-0.3%) lags with HSBC and Standard Chartered contributing to the weakness. STOXX Europe 600: +0.5%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.7%, Italy's FTSE MIB: +1.8%, Spain's IBEX 35: +1.0%.

In news:

• The Confederation of British Industry lowered its domestic growth forecast for 2026 to 1.1% from 1.3% while the outlook for 2027 was reduced to 0.9% from 1.5%.
• The market remains confident that the European Central Bank will announce a 25-basis point hike on Thursday.

In economic data:

• Germany's April trade surplus EUR14.5 bln (expected surplus of EUR15.4 bln; last surplus of EUR14.7 bln). April Imports 1.2% m/m (last 4.5%) and Exports 0.9% m/m (last 0.3%). April Industrial Production 0.4% m/m, as expected (last -0.1%); -0.5% yr/yr (last -3.5%)