U.S. Stocks Look to Extend Rally, Oil Rebounds on Uncertainty

By Dow Jones Newswires Staff

U.S. stock futures rose while oil edged higher in early European trade as progress in U.S.-Iran peace talks remained clouded in uncertainty.

Asian stocks were mixed Tuesday as mainland Chinese stocks outperformed. U.S. stocks looked set to extend a multiday rally after broad-based gains Monday. Palantir surged over 15% in after-hours trade after the technology giant said it nearly doubled its revenue on year.

Oil recouped some of its Monday losses to trade just shy of $85 a barrel. President Trump said the U.S.'s current offer of talks was Iran's "last chance", after Tehran said it was only negotiating with Oman, and that it had no plans for talks with Washington. Investors are treating any suggestion of peace talks with caution given recent false starts.

Market participants await June U.S. job openings data report due later Tuesday. SpaceX will deliver its first earnings report as a public company after market close.

--Oil prices rebounded after Monday's selloff, with Brent crude up 1.3% to $84.82 a barrel and WTI up 0.6% to $80.78 a barrel. The benchmarks settled 4.7% and 5.1% lower, respectively, in the previous session. "Oil sold off sharply yesterday on optimism that a Middle East deal might be within reach," analysts at ING said. "However, markets may be getting ahead of themselves once again [...] We've been in this situation multiple times before, only to see things unravel." Shipping traffic in the Gulf remains dangerous, with the U.K. Maritime Trade Operations agency saying Monday that a cargo vessel off the Omani coast was struck by an unknown projectile.

--In the U.S., futures for the S&P 500 were up 0.2%, while the Dow Jones Industrial Average climbed 0.15%. Nasdaq futures were up 0.7%.

--Stocks in Asia were mixed as Japan's Nikkei 225 index climbed 0.3%, whereas Hong Kong's Hang Seng declined 0.5%. Korea's memory chip-heavy Kospi gained 1.6%. China's benchmark Shanghai Composite gained 0.3%.

--European indexes rose strongly at market open. Defense and AI-related stocks gained as the Stoxx 600 traded up 0.6%. London's FTSE 100 moved 0.45% higher. AstraZeneca jumped 2% after falling sharply Monday, while miners and defense stocks in the index also gained. The DAX rose 0.8% in Frankfurt as pharmaceuticals giant Bayer added 4.65% after turning to a net profit in the last quarter. Siemens Energy and Infineon Technologies jumped 3.7% and 3.6%, respectively, amid renewed AI optimism. Schneider Electric and STMicroelectronics gained 2.8% and 2.1%, respectively, helping push the CAC 40 up 0.55% in Paris despite weakness in luxury stocks. Italy's FTSE MIB jumped 0.7%, while Spain's IBEX 35 was up 0.1%. The Dutch AEX added 0.6% as semiconductor-related stocks rallied, with ASML up 2.1%.

--The dollar rose on higher oil prices and as the impact of recent U.S.-Japanese joint interventions to support the yen started to fade. U.S. and Japanese authorities confirmed joint intervention to shore up the yen last week, which had caused the dollar to weaken. The DXY dollar index rose 0.1% to 100.008 after hitting a seven-week low of 99.418 Monday. The dollar rose 0.3% to 157.61 yen after reaching a three-month low of 155.21 Monday.

--U.S. Treasury yields were stable to slightly higher in Asian trade, driven by the long end of the curve, as inflation fears due to energy prices continue to prevail. Newly released quarterly financing estimates show the Treasury expects to borrow $739 billion in privately-held net marketable debt in July-September, $68 billion higher than announced in May. The two-year Treasury yield was unchanged at 4.255%, while the 10-year yield was up 1.2 basis points at 4.695%, according to Tradeweb.

--Eurozone government bond yields were little changed. Developments in the Middle East remain the key driver for government bonds. Eurozone bond supply is fading this month due to the seasonal issuance slowdown. The 10-year Bund yield was stable at 3.148%, according to LSEG.

--Bitcoin fell 0.2% to $63,626.

--New York gold futures rose 0.7% to $4,119.00 a troy ounce.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

August 04, 2026 04:26 ET (08:26 GMT)