The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to move back to the upside following the modest pullback seen in the previous session.
A positive reaction to some of the latest earnings news may contribute to early strength on Wall Street even as traders keep an eye on the latest developments in the Middle East.
Shares of UnitedHealth (UNH) are surging by 7.2 percent in pre-market trading after the health insurance giant reported better than expected first quarter results and raised its full-year earnings guidance.
Homebuilder D.R. Horton (DHI) is also seeing significant pre-market strength after reporting first quarter earnings that exceeded analyst estimates.
On the other hand, shares of 3M (MMM) may come under pressure after the conglomerate reported better than expected first quarter earnings but provided disappointing full-year guidance.
Early buying interest may also be generated in reaction to a Commerce Department report showing retail sales in the U.S. surged by more than expected in the month of March.
The report said retail sales shot up by 1.7 percent in March after climbing by an upwardly revised 0.7 percent in February.
Economists had expected retail sales to jump by 1.4 percent compared to the 0.6 percent increase originally reported for the previous month.
Excluding sales by motor vehicle and parts dealers, retail sales surged by 1.9 percent in March after growing by 0.7 percent in February. Ex-auto sales were expected to leap by 1.3 percent.
However, traders may be reluctant to make significant moves as they await further news about potential peace talks between U.S. and Iran as the end of their ceasefire looms.
"Oil prices remained below $100 a barrel which suggests cautious optimism that the Middle East conflict won't intensify," said Russ Mould, investment director at AJ Bell.
He added, "However, the longer oil remains in the 90s range (currently $95), the higher the chance of an inflationary shock and a wobble to global economic activity."
Following the substantial rally seen last week, stocks saw a modest pullback during trading on Monday. The major averages all moved to the downside, although selling pressure was relatively subdued.
The major averages finished the day well off their lows of the session but still in the red. The Nasdaq fell 64.09 points or 0.3 percent to 24,404.39, the S&P 500 dipped 16.92 points or 0.2 percent to 7,109.14 and the Dow edged down 4.87 points or less than a tenth of a percent to 49,442.56.
The modest weakness on Wall Street came amid concerns about the re-escalation of tensions between the U.S. and Iran following the latest developments in the Middle East.
Over the weekend, Iran once again closed the Strait of Hormuz and purportedly fired on tankers in the vital waterway, blaming the U.S. blockade of Iranian ports for the moves.
President Donald Trump called Iran's actions a "total violation" of the ceasefire agreement between the U.S. and Iran, which is currently set to expire this week.
In a post on Truth Social, Trump also said he is sending representatives to Islamabad, Pakistan, for talks with Iran, although Tehran has denied there are plans for a second round of negotiations.
Trump once again threatened to knock out every single power plant and bridge in Iran if the country refuses to make a deal.
The latest threats combined with news that U.S. forces have seized an Iranian-flagged cargo ship in the Gulf of Oman, contributed to a significant rebound by the price of crude oil.
Some traders may also have been looking to cash in on last week's strong gains, although selling pressure remained relatively subdued amid persistent optimism about an eventual U.S.-Iran deal.
Reflecting the lackluster performance by the broader markets, most of the major sectors ended the day showing only modest moves.
Airline stocks saw considerable weakness, however, with the NYSE Arca Airline Index falling by 1.8 percent after soaring by 6.4 percent last Friday.
A pullback by the price of gold also weighed on gold stocks, dragging the NYSE Arca Gold Bugs Index down by 1.3 percent.
Pharmaceutical and health care stocks also saw notable weakness on the day, while steel and banking stocks moved to the upside.
Commodity, Currency Markets
Crude oil futures are falling $0.61 to $89 a barrel after soaring $5.76 to $89.61 a barrel on Monday. Meanwhile, after slumping $50.80 to $4,828.80 ounce in the previous session, gold futures are sliding $32.90 to $4,795.90 an ounce.
On the currency front, the U.S. dollar is trading at 159.19 yen compared to the 158.79 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1757 compared to yesterday's $1.1787.
Asia
Asian stocks ended mostly higher on Tuesday, even as tensions between Washington and Tehran continued to simmer ahead of a potential ceasefire deadline.
The dollar index was range-bound, and U.S. Treasury yields were little changed ahead of the release of U.S. retail sales data and a confirmation hearing for Federal Reserve chair nominee Kevin Warsh later in the day.
Gold fell below $4,800 an ounce and Brent crude futures Slipped below $94 a barrel as investors awaited clarity on U.S.-Iran peace talks.
U.S. President Trump has indicated that he is unlikely to extend the truce with Iran if no agreement is reached before its expiry Wednesday evening, Washington time.
China's Shanghai Composite Index finished marginally higher at 4,085.08 after a choppy session. Hong Kong's Hang Seng Index edged up by 0.5 percent to 26,487.48.
Japanese markets advanced as tech stocks surged on optimism over AI investments and technology advancements. The Nikkei 225 Index climbed 0.9 percent to 59,349.17, while the broader Topix Index settled 0.2 percent lower at 3,770.38.
Tokyo Electron rallied 3.5 percent, SoftBank Group shares soared 8.5 percent and Kioxia Holdings jumped 7.3 percent. Nojima Corp. soared 14.2 percent following reports that the electronics maker is planning to acquire a majority stake in Hitachi's consumer appliances unit.
Financials lagged, with Mitsubishi UFJ Financial falling 1.4 percent and Mizuho losing 1.9 percent.
Seoul stocks posted strong gains to close at a new record high on hopes of U.S.-Iran peace talks and the return of the AI trade.
The Kospi surged 2.7 percent to 6,388.47, with Samsung Electronics, Hyundai Motor and SK Hynix rallying 2-5 percent.
Battery maker LG Energy Solution soared 11.4 percent and Samsung SDI jumped nearly 20 percent after the companies said they have won major deals to supply batteries to German luxury car maker Mercedes-Benz.
Australian markets ended on a flat note after yet another tepid trading session as Iranian Foreign Minister Abbas Araqchi said that "continued violations of the ceasefire" by the U.S. are a major obstacle to continuing the diplomatic process.
Rio Tinto rose 0.8 percent after the mining giant reported higher copper, iron ore and alumina output in the first quarter.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index crept up 0.1 percent to 12,932.33, paring earlier gains.
Europe
European stocks are turning in a mixed performance on Tuesday, as contradicting signals cast doubts over the state of possible fresh peace talks between the U.S. and Iran.
The British pound dipped after data showed the U.K. unemployment rate dropped and wage growth eased in the three months to February.
The jobless rate stood at 4.9 percent in the December to February period, down from 5.2 percent in the previous three-month period. This was the lowest rate since the three months ending in August 2025, when it was 4.8 percent.
While the German DAX Index is up by 0.3 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both down by 0.3 percent.
Vivendi shares have risen. The French media firm reported a small increase in its first-quarter net revenue, driven by persistent strength in its videogame unit.
U.K. building products manufacturer Ibstock has also moved to the upside after appointing Will Wilkins as its CFO and Executive Director.
British Land Company shares have also advanced. The real estate group said it now expects fiscal 2027 underlying EPS of at least 30.5 pence, ahead of previous guidance of at least 30.2 pence.
Spain's Puig Brands has also rallied following reports that U.S. cosmetics giant Estee Lauder had tapped JPMorgan Chase to structure a financial package of around 5 billion euros for its potential takeover bid.
Meanwhile, aerospace and defense group Thales has tumbled after reporting first-quarter orders slightly below analyst forecasts.
German consumer goods group Beiersdorf has also fallen after reporting lower group sales in the first quarter of 2026, reflecting declines across all regions.
Swedish industrial bearings maker SKF has also declined after reporting a decrease in first quarter adjusted operating profit.
Associated British Foods has also shown a notable move to the downside after first half adjusted profit fell 18 percent.
Royal Unibrew shares have also moved sharply lower. The Danish brewer said it would end its relationship with PepsiCo in northern Europe.
U.S. Economic News
The Commerce Department released a report on Tuesday showing retail sales in the U.S. surged by more than expected in the month of March.
At 10 am ET, the National Association of Realtor is due to release its report on pending home sales in the month of March. Pending home sales are expected to increase by 0.9 percent in March after jumping by 1.8 percent in February.
The Commerce Department is also scheduled to release its report on business inventories in the month of February. Business inventories are expected to rise by 0.2 percent in February after edging down by 0.1 percent in January.
At 2:30 pm ET, Federal Reserve Governor Christopher Waller is due to speak on "Modernizing Reserve Bank Operations" before the Brookings Institution.
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April 17, 2026 15:29 ET The ongoing conflict in the Middle East continues to raise concerns for policymakers who worry about the impact of the supply shock and high energy prices on the real economy. Producer price data and various survey results on the housing market were the main news from the U.S. this week. In Europe, industrial production data for the euro area gained attention. GDP figures out of China and the policy move by the Singapore central bank were in focus in Asia.