(Editor’s note: The headline and lede were updated; ETFs and futures data were updated to their latest moves and economic data was added.)
U.S. stock futures pared losses to advance on Tuesday, as the Dow Jones, S&P 500 and Nasdaq 100 indices rose, following Monday’s lower close.
Small business sentiment provided a bright spot for the economy as the NFIB Small Business Optimism Index rose 2.4 points in July to 99.8, surpassing its 52-year historical average of 98.0 to hit its highest level since August 2025.
The gain was largely propelled by a surge in hiring plans—which jumped 9 points to a net 20%—alongside improved capital expenditure expectations, signaling that small firms are seeing potential spillover opportunities from broader economic growth despite ongoing inflation and geopolitical uncertainties.
Brent Crude Oil futures climbed 2.52% to $89.93, as President Donald Trump demanded that Iran pay compensation for historical damages and deaths, dimming hopes for a deal to reopen the Strait of Hormuz, according to Reuters. The new demands complicate peace efforts following Tehran’s insistence on an end to sanctions before reopening the vital shipping lane.
Meanwhile, the 10-year Treasury bond yielded 4.73%, and the two-year bond was at 4.03%. The CME Group’s FedWatch tool’s projections show markets pricing a 51.9% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.10% |
| S&P 500 | 0.15% |
| Nasdaq 100 | 0.30% |
| Russell 2000 | 0.23% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Tuesday. The SPY was up 0.19% at $774.48, while the QQQ advanced by 0.39% to $723.71.
Stocks In Focus
Rocket Lab
- Rocket Lab Corp. (NASDAQ:RKLB) dropped 8.95% in premarket on Tuesday despite record revenue, $2.36 billion order backlog, and strong third-quarter guidance, as a wider-than-expected loss per share of $0.08 and uncertainty regarding the Neutron rocket’s maiden launch timeline loomed.
- Benzinga’s Edge Stock Rankings indicate that RKLB maintains a weak price trend in the short and medium terms but a strong trend in the long term.
Plug Power
- Plug Power Inc. (NASDAQ:PLUG) gained 10.94% as it reported second-quarter revenue of $178.3 million, beating analyst estimates, while its adjusted loss of 7 cents per share also topped expectations. Gross margin improved to breakeven from negative 13% in the first quarter, while service revenue jumped 82% year over year to about $30 million.
- Benzinga’s Edge Stock Rankings indicate that PLUG maintains a weak price trend in the long, short, and medium terms.
AST SpaceMobile
- AST SpaceMobile Inc. (NASDAQ:ASTS) slipped 3.26% as it reported second-quarter revenue of $31.5 million, missing analyst estimates, while its loss of 77 cents per share also fell short of expectations. The company’s revenue backlog grew to approximately $1.3 billion in contracted revenue and U.S. government awards.
- Benzinga’s Edge Stock Rankings indicate that ASTS maintains a weak price trend in the long, short, and medium terms.
CoreWeave
- CoreWeave Inc. (NASDAQ:CRWV) fell 0.73% ahead of its earnings scheduled to be released after the closing bell. Analysts expect a loss of $1.49 per share on revenue of $2.55 billion.
- Benzinga’s Edge Stock Rankings indicate that CRWV maintains a weak price trend in the long and medium terms but a strong trend in the short term.
Super Micro Computer
- Super Micro Computer Inc. (NASDAQ:SMCI) was 1.59% higher ahead of its earnings scheduled to be released after the closing bell. Analysts expect earnings of 88 cents per share on revenue of $11.45 billion.
- Benzinga’s Edge Stock Rankings indicate that SMCI maintains a strong price trend in the short and medium terms but a weak trend in the long term, with a good value score.
Cues From Last Session
Energy, health care and communication services stocks recorded the biggest gains on Monday, pushing most S&P 500 sectors into positive territory while real estate and utilities lagged, even as U.S. stocks settled mostly lower with the Dow falling over 50 points as oil and Treasury yields jumped.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.11% | 53.975,98 |
| S&P 500 | -0.06% | 7.753,11 |
| Nasdaq Composite | -0.32% | 26.605,36 |
| Russell 2000 | -0.56% | 3.017,40 |
Insights From Analysts
Professor Jeremy Siegel maintains a bullish outlook on the U.S. economy and stock market, viewing recent labor softness as a transition rather than a recessionary signal.
He argues that the job market has entered a “new equilibrium,” where modest monthly payroll gains maintain stability, believing headline employment weakness is largely driven by temporary distortions.
Regarding monetary policy, Siegel expects the Federal Reserve to hold interest rates steady, noting that unless oil prices spike significantly, “it will be difficult for the Fed to justify raising rates at its September meeting.”
A central driver of his optimistic market outlook is corporate strength and technological innovation. He highlights that corporate America continues to deliver “remarkably strong earnings,” structurally driven by heavy tech investments.
Looking ahead, Siegel anticipates a potential “AI-driven acceleration” in productivity. If businesses manage to produce more output with fewer hours, “the economy may be entering a more favorable long-term productivity cycle,” supporting sustained stock gains and easing inflation.
Ultimately, he concludes that “the broader story remains one of an economy that continues to adapt, innovate, and demonstrate remarkable resilience.”
Upcoming Economic Data
Here’s what investors will be keeping an eye on Tuesday.
- Small Business Optimism Rebounds: The NFIB Small Business Optimism Index rose 2.4 points in July to 99.8, topping its 52-year average (98.0) to reach its highest level since August 2025. The index was driven by a 9-point jump in job creation plans (net 20%) and a 5-point rise in capital outlay plans (25%), even as 27% of owners cited labor quality as their single top problem.
- July’s existing home sales data will be out by 10:00 a.m., and the Federal Reserve Bank of New York’s second quarter household debt and credit report will be published by 11:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 2.76% to hover around $84.40 per barrel.
Gold Spot US Dollar fell 0.34% to hover around $4,375.50 per ounce. The U.S. Dollar Index spot was 0.04% higher at the 99.8490 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.69% lower at $64,051.60 per coin over the last 24 hours.
Asian markets were mixed on Tuesday, as Australia’s ASX 200, Japan’s Nikkei 225, and South Korea’s Kospi indices rose, whereas China’s CSI 300, Hong Kong’s Hang Seng and India’s Nifty 50 indices fell. European markets were also mixed in early trade.
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