US Stock Futures Rise as Wall Street Reopens on Middle East Peace Hopes and Key Economic Data Ahead

U.S. stock futures moved higher on Tuesday as Wall Street reopened following the holiday-extended weekend, with investors closely monitoring developments surrounding a potential diplomatic breakthrough between the United States and Iran.

Market sentiment improved after President Donald Trump stated that negotiations with Iran were progressing positively, while cautioning that renewed military escalation remained possible if talks failed. Reports also indicated that a Pakistani mediator informed Chinese officials that both sides were approaching a potential agreement.

Despite the improving tone, several major geopolitical issues remain unresolved, including Iran’s nuclear program and Tehran’s insistence on maintaining strategic control over maritime traffic through the Strait of Hormuz — one of the world’s most critical energy transit routes.

The rebound in futures follows a broadly positive week for U.S. equities. Last week, the Dow Jones Industrial Average advanced 2.13%, while the S&P 500 gained 0.88% and the Nasdaq Composite rose 0.45%, supported by easing geopolitical concerns and another round of resilient corporate earnings.

Investors are now turning their attention toward a packed week of economic and corporate catalysts that could shape expectations for monetary policy and broader market direction.

Among the most closely watched releases are the U.S. Personal Consumption Expenditures (PCE) inflation report — the Federal Reserve’s preferred inflation gauge — and updated Gross Domestic Product (GDP) figures, both expected to provide additional clarity on the strength of the U.S. economy and the trajectory of interest rates.

On the corporate side, markets are preparing for earnings results from major technology and enterprise software companies including Zscaler, Salesforce and Dell Technologies, as investors continue evaluating the sustainability of AI-driven spending and enterprise technology demand.

The combination of geopolitical developments, inflation data and earnings reports is expected to keep volatility elevated throughout the week as markets assess whether recent equity gains can extend further into the second half of the year.