U.S. Stock Futures Rise on Hopes for a Ceasefire Between Israel and Iran, Powell in the Hot Seat

U.S. stock futures advanced early Tuesday as investor sentiment improved following President Donald Trump’s announcement of a ceasefire between Israel and Iran.

By 06:33 ET (10:33 GMT), Dow Jones futures were up 294 points (0.7%), S&P 500 futures gained 49 points (0.8%), and Nasdaq 100 futures rose 225 points (1.0%). Major indexes had already ended the previous session with gains of around 1%, buoyed by expectations that U.S. involvement in the conflict would remain limited.

Ceasefire Sparks Risk-On Mood

Investor confidence was lifted after Trump declared via social media that a ceasefire was now “in effect,” urging both sides not to violate the agreement. His statement raised hopes that the 12-day conflict, marked by intense airstrikes, was drawing to a close.

However, Trump noted the ceasefire would occur in stages, with ongoing military operations allowed to conclude. Doubts about the truce’s durability persist, especially after the Israeli military reported new missile launches from Iran and vowed readiness to respond.

Attention Turns to Powell’s Testimony

Beyond geopolitics, markets are closely watching Fed Chair Jerome Powell’s testimony before Congress, which begins later Tuesday. Powell is expected to address the Fed’s recent decision to keep interest rates unchanged and the risks posed by ongoing trade tensions.

President Trump continued his criticism of Powell, calling him a “very dumb, hardheaded person” on social media and urging a steep rate cut of two to three percentage points. Some Fed officials have echoed dovish sentiment: Governor Michelle Bowman signaled openness to a July cut, while Christopher Waller also said he would consider supporting one.

Tesla Rallies, Chewy and KB Home Slip

In corporate news, Tesla (TSLA) extended its gains in premarket trading after launching its anticipated Robotaxi service in Austin, Texas, with a pilot fleet of 10–20 Model Y vehicles.

Meanwhile, Chewy (CHWY) shares dropped after the company announced a $1 billion public offering of its Class A stock through JPMorgan, alongside a $100 million share buyback program.

KB Home (KBH) also traded lower after the homebuilder cut its full-year revenue forecast to between $6.3 billion and $6.5 billion, down from a previous range of $6.6 billion to $7 billion.

Oil Drops as Conflict Risk Eases

Crude prices declined as ceasefire hopes reduced fears of supply disruptions in the oil-rich Middle East. By 05:45 ET, Brent crude was down 3.1% at $68.30 per barrel, while U.S. WTI fell 3.1% to $66.40.

Both benchmarks had dropped more than 7% on Monday, erasing gains from last weekend’s U.S. strikes on Iranian nuclear facilities. With Iran—OPEC’s third-largest producer—potentially able to maintain or increase exports, traders are reassessing near-term supply risks.