Key facts
- US stock futures showed minimal change as the trading quarter concluded.
- The S&P 500 and Nasdaq Composite are poised for their strongest quarterly performance in six years.
- The Dow Jones Industrial Average is on track for its best quarterly gain since 2022.
- Investors are anticipating upcoming economic data and the corporate earnings season.
- Concentrix shares fell significantly after reducing its annual revenue and profit forecasts.
- AeroVironment shares rose following an increase in its quarterly revenue.
U.S. stock futures traded with little change on Tuesday, marking the final session of a quarter that has seen significant gains for equities. Investors are awaiting key economic data, including the JOLTS job openings report and the Conference Board's consumer confidence index, for further market direction.
Despite geopolitical tensions and concerns surrounding AI spending, the equity markets have shown resilience. The S&P 500 and the Nasdaq Composite are on track for their best quarterly performance in six years, while the Dow Jones Industrial Average is set for its strongest quarterly gain since 2022.
Analysts are looking to the upcoming earnings season to provide a boost to stocks, particularly after a notable selloff in semiconductor and tech shares last week. Brian Levitt, chief global market strategist at Invesco, suggested that the recent 'June gloom' in technology could reverse as earnings season approaches.
However, some market participants caution that a significant rally in the second half of the year may depend on a breakthrough in negotiations to resolve the U.S.-Iran conflict. Traders are currently pricing in at least one interest rate hike by the Federal Reserve by the end of 2026, and attention will be on Fed Chair Kevin Warsh's remarks at an economic conference in Portugal.
In premarket trading, shares of Concentrix fell 23.7% after the company revised down its annual revenue and adjusted profit forecasts. Conversely, AeroVironment saw its shares climb 20.8% following a reported increase in quarterly revenue.