U.S. stock futures fell sharply on Tuesday following Monday’s mixed close. Futures of the major benchmark indices were negative amid the ongoing Iran-U.S. conflict.
Iranian state media reported that Tehran has closed the Strait of Hormuz and warned it would fire on any vessel attempting to pass. Also, Israel’s IDF said it carried out simultaneous targeted strikes on military targets in Tehran and Beirut, including a strike on the Iranian state broadcaster.
According to Polymarket, traders are heavily leaning toward a down open on Tuesday, with the market pricing the S&P 500 to open lower at 93% “Down” versus 7% “Up,” on roughly $28,200 in volume.
Meanwhile, the 10-year Treasury bond yielded 3.09%, and the two-year bond was at 3.54%. The CME Group’s FedWatch tool‘s projections show markets pricing a 97.3% likelihood of the Federal Reserve leaving the current interest rates unchanged in March.
| Index | Performance (+/-) |
| Dow Jones | -1.45% |
| S&P 500 | -1.66% |
| Nasdaq 100 | -2.17% |
| Russell 2000 | -2.57% |
Stocks In Focus
Credo Technology Group Holding
- Credo Technology Group Holding Ltd. (NASDAQ:CRDO) declined 12.10% despite reporting better than expected third-quarter results.
- CRDO had a weaker price trend in the short and medium terms but a strong trend in the long term, with a solid growth score, as per Benzinga’s Edge Stock Rankings.
Asana
- Asana Inc. (NYSE:ASAN) rose 3.29% after posting upbeat earnings for the fourth quarter after the closing bell on Monday.
- Benzinga’s Edge Stock Rankings indicate that ASAN maintains a weak price trend over the short, medium, and long terms.
Coherent
- COHR maintains a strong price trend in the short, medium, and long terms, with a poor value ranking, as per Benzinga’s Edge Stock Rankings.
Cal-Maine Foods
- Cal-Maine Foods Inc. (NASDAQ:CALM) was up 0.25% after it announced the acquisition of Creighton Brothers LLC.
- Benzinga’s Edge Stock Rankings indicate that CALM maintains a strong price trend over the short term but a weak trend in the medium and long terms, with a solid growth score.
CrowdStrike Holdings
- CrowdStrike Holdings Inc. (NASDAQ:CRWD) dropped 2.08% as analysts expect it to report earnings of $1.10 per share on revenue of $1.30 billion, after the closing bell.
- Benzinga’s Edge Stock Rankings indicate that CRWD maintains a weak price trend over the short, medium, and long terms.
Cues From Last Session
Consumer staples, discretionary, and healthcare stocks led losses on Monday as most S&P 500 sectors declined, though energy and industrials rose.
Insights From Analysts
Professor Jeremy Siegel views the current U.S. stock market not as a “market in distress,” but rather as one undergoing a healthy “rotation.” While equities softened in late February, he notes that eight of nine U.S.-style boxes remain positive year-to-date.
Siegel anticipates a shift in leadership, suggesting mega-cap AI leaders might deliver 0% to 10% returns this year, while the rest of the market could advance 10% to 15%.
He specifically points out that mid-cap, small-cap, and value sectors are beginning to participate in this broadening trend. Regarding the broader economy, Siegel dismisses fears of AI-driven job destruction, labeling the technology a “productivity accelerator” rather than an “apocalypse”.
He expects the future to be “one of higher output, higher real incomes, and greater abundance”. With real GDP expanding near 3%, he argues this pace implies rising productivity since labor force growth has slowed.
Furthermore, he observes easing inflation, noting that housing—the largest CPI component—is now tracking at or below the Federal Reserve’s target pace.
Upcoming Economic Data
Here’s what investors will be keeping an eye on Tuesday.
- New York Fed President John Williams will deliver remarks at 9:55 a.m., Kansas City Fed President Jeff Schmid will speak at 10:10 a.m., and Minneapolis Fed President Neel Kashkari will participate in an interview at 11:45 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 5.29% to hover around $75.00 per barrel.
Gold Spot US Dollar fell 1.12% to hover around $5,262.32 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.78% higher at the 99.1480 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.15% higher at $66,450.41 per coin, as per the last 24 hours.
Asian markets closed lower on Tuesday, as China’s CSI 300, Australia’s ASX 200, Japan’s Nikkei 225, Hong Kong’s Hang Seng, South Korea’s Kospi, and India’s Nifty 50 indices fell. European markets were also lower in early trade.
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