US stock futures rallied sharply on Tuesday as investors remained hopeful that diplomatic efforts could lead to a US-Iran agreement despite fresh military action. According to reports from CNBC TV18, Dow futures rose more than 300 points, or 0.6%, while S&P 500 futures gained 0.7% and Nasdaq-100 futures advanced 1%. The gains came even after the US carried out what it described as "self-defense" strikes in southern Iran early Tuesday, targeting missile launch sites and Iranian vessels allegedly attempting to deploy naval mines.
The market rally occurred despite the US military action, with President Trump providing some diplomatic optimism. As reported by CNBC TV18, Trump said talks with Iran to end the conflict were "proceeding nicely," though he warned that the United States could take further action if negotiations fail. Oil prices eased from recent highs, helping support risk sentiment, with US crude futures down about 4% while Brent crude traded near $98 a barrel. Markets remain sensitive to developments around the Strait of Hormuz, a key route for global oil supplies.
Shares of rocket and satellite companies extended gains in premarket trading after SpaceX publicly filed for what could become the largest-ever initial public offering. According to CNBC TV18, among movers, shares of Redwire Corporation rose 15%, MDA Space gained 13%, and Firefly Aerospace advanced 11%. The space sector gains added to the overall market optimism despite geopolitical tensions.
Investors are also monitoring the outlook for monetary policy, with traders expecting the Federal Reserve to remain cautious on interest-rate cuts. As reported by CNBC TV18, while oil prices have eased, crude remains elevated compared with levels seen earlier this year, keeping inflation concerns alive. The elevated energy prices could persist if energy-driven price pressures continue, influencing the Fed's approach to monetary policy.
