US market futures rose and oil prices fell as the Middle East ceasefire appeared to hold. Traders are also expecting that strong results will drive shares higher.
S&P 500 futures rose 0.4%. The Nasdaq 100 index climbed 0.6%, putting it on track to reach fresh highs when the market opens. Premarket trading saw some of the highest gains for processor and memory chip manufacturers. A projection from AMD later on Tuesday will provide additional evidence of whether the AI spending boom is sustainable.
Meanwhile, bonds had some relief as Brent fell 1.3% to below $113 per barrel. The UK was an exception, as traders returned from a public vacation to catch up with a global surge in yields. The Dollar remained unchanged.
In Europe, the Stoxx 600 increased 0.5%. Anheuser-Busch surged more than 7% on unexpectedly strong beer demand. HSBC plummeted 5.4% following a disappointing earnings report.
While global stocks are near record highs, the market is not complacent, as the current breadth is tight and consumer stocks remain at low levels. They anticipate greater results from consumer cyclicals in the second part of the year.
