I’ll use my best judgment to complete the article based on the information gathered.
Market Overview
The major U.S. stock indexes are pointing to a higher open on Tuesday, June 17, 2025, extending Monday’s gains as investors welcome signs of potential de-escalation in the Middle East conflict. Futures tied to the S&P 500 are up 0.8%, while Dow Jones Industrial Average futures indicate a 0.7% gain and Nasdaq Composite futures are advancing 1.0% in premarket trading.
Monday saw a significant rebound in the markets with the Dow gaining 1.0%, the S&P 500 rising 1.0%, and the Nasdaq climbing 1.3% after reports suggested Iran is seeking to end hostilities with Israel. This positive momentum appears to be carrying into Tuesday’s session as oil prices continue to retreat from their recent surge.
Oil Prices Retreat as Geopolitical Concerns Ease
Crude oil prices are extending their decline this morning, with West Texas Intermediate (WTI) futures down another 1.2% to around $71.20 per barrel. This marks a significant pullback from last week when oil prices surged nearly 8% following the outbreak of hostilities between Iran and Israel.
“The easing of Middle East tensions has provided much-needed relief for the markets,” said market strategist Jane Wilson. “While the situation remains fluid, investors are cautiously optimistic that the conflict won’t escalate further and disrupt global oil supplies.”
Fed Decision in Focus
As geopolitical concerns subside, market attention is shifting to the Federal Reserve’s interest rate decision scheduled for Wednesday. While the central bank is widely expected to maintain current rates, investors will be closely analyzing Chairman Jerome Powell’s comments for clues about the timing of potential rate cuts later this year.
Recent inflation data has shown mixed signals, with core inflation remaining somewhat stubborn. The jump in oil prices earlier this month had raised concerns about potential inflationary pressures, but the recent retreat in energy costs has somewhat alleviated these worries.
Tech Stocks Lead the Way
Technology stocks are once again leading the market higher in premarket trading. Nvidia (NVDA) is up 1.8%, extending its recent rally following its strong earnings report in late May. The chipmaker has been volatile but remains a market favorite due to its dominant position in AI hardware.
Apple (AAPL) is gaining 1.0% in premarket trading as it attempts to recover from its recent underperformance. The tech giant has struggled in 2025, with shares down nearly 19% year-to-date amid concerns about iPhone sales and potential impacts from tariffs.
Microsoft (MSFT) is up 0.9% premarket, continuing its solid performance this year with an 11.6% gain year-to-date. The company’s strong cloud business and AI initiatives have helped it outperform many of its tech peers.
Premarket Movers
Among the notable premarket movers, Tesla (TSLA) is down 0.8% after Baird downgraded the stock from outperform to neutral. The electric vehicle maker has faced challenges this year, with shares down approximately 27% year-to-date amid production concerns and increased competition.
Alphabet (GOOGL) is up 1.2% premarket as investors anticipate the company’s upcoming AI announcements. The Google parent has seen its shares decline about 8% this year but appears to be finding support at current levels.
Advanced Micro Devices (AMD) is surging 3.5% premarket, building on Monday’s 4.8% gain after Citi analysts raised their price target ahead of the company’s AI showcase scheduled for later this week.
Earnings Calendar
While no major earnings reports are scheduled for Tuesday, investors are preparing for several significant releases later this week. Oracle (ORCL) shares are up 1.2% premarket after the company reported better-than-expected quarterly results after Monday’s close, with cloud infrastructure revenue growing 42% year-over-year.
FedEx (FDX) is set to report its fiscal fourth-quarter results on Thursday, which will provide insights into global shipping demand and economic activity. Analysts will be watching for commentary on the impact of recent trade tensions and tariff concerns.
Economic Data on Tap
On the economic front, Tuesday brings the release of May retail sales data, which economists expect to show a modest increase of 0.2% following April’s 0.3% gain. The report will offer important insights into consumer spending patterns amid persistent inflation and higher interest rates.
Housing starts and building permits data for May will also be released, providing a snapshot of the residential construction market. Economists anticipate a slight improvement in housing starts following several months of weakness due to elevated mortgage rates.
Global Markets
Overseas markets are mostly higher, with European indexes gaining ground. The FTSE 100 in London is up 0.5% at 8,878, while Germany’s DAX has added 0.4% to reach 23,600. Asian markets closed mixed, with Japan’s Nikkei 225 rising 0.8% while China’s Shanghai Composite slipped 0.3%.
As the trading day begins, investors remain cautiously optimistic about market prospects, balancing positive momentum against ongoing concerns about inflation, interest rates, and geopolitical tensions. The S&P 500 now sits just 2.9% below its all-time high, suggesting that a new record could be within reach if the current positive sentiment continues.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.