The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.3% and the actively traded Invesco QQQ Trust (QQQ) was 1.1% higher in Tuesday's premarket activity amid hopes for a re-opening of the Strait of Hormuz after US Treasury Secretary Scott Bessent told CNBC that the US and Iran could reach a deal Tuesday or Wednesday.
US stock futures were also higher, with S&P 500 Index futures up 0.3%, Dow Jones Industrial Average futures advancing 1.1%, and Nasdaq futures gaining 1.1% before the start of regular trading.
The US international trade deficit narrowed to $73.26 billion in June from a $77.65 billion gap in May, a slightly larger deficit than the expectations for a $73 billion gap in a survey compiled by Bloomberg as of 7:30 am ET.
Factory orders and job openings data for June are due to be released at 10 am ET.
In premarket activity, bitcoin was down by 0.1%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was flat, Ether ETF (EETH) retreated 0.01%, and Bitcoin & Ether Market Cap Weight ETF (BETH) was flat.
Power Play:
Technology
The State Street Technology Select Sector SPDR ETF (XLK) advanced 2.2%, the iShares US Technology ETF (IYW) was 1.9% higher, and the iShares Expanded Tech Sector ETF (IGM) was up 1.6%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) gained 1.2%, while the iShares Semiconductor ETF (SOXX) rose by 4.4%.
Palantir Technologies (PLTR) shares were up more than 15% in Tuesday's premarket activity after multiple analyst price target raises followed the company's Q2 beat.
Winners and Losers:
Industrial
The State Street Industrial Select Sector SPDR ETF (XLI) advanced 1.6%, while the Vanguard Industrials Index Fund (VIS) was up 0.7% and the iShares US Industrials ETF (IYJ) was 0.8% higher.
Caterpillar (CAT) shares were up 11% after the company reported higher Q2 earnings and revenue.
Health Care
The State Street Health Care Select Sector SPDR ETF (XLV) retreated 0.1%, the Vanguard Health Care Index Fund (VHT) advanced marginally by 0.02%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was down 0.3%.
IDEXX Laboratories (IDXX) stock was up 4% premarket after the company posted higher Q2 comparable earnings and revenue.
Energy
The iShares US Energy ETF (IYE) gained 1%, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 0.8%.
Energy Transfer (ET) stock was up more than 4% before market open after the company reported higher Q2 earnings and revenue.
Financial
The State Street Financial Select Sector SPDR ETF (XLF) declined by 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.7%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.4% higher.
TOP Financial (TOP) shares were up 4% in early hours activity after the company said its board has approved a plan to integrate artificial intelligence into its online brokerage and financial technology platforms.
Consumer
The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.4%, the Vanguard Consumer Staples Index Fund ETF Shares (VDC) retreated 0.04%, and the iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.4%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was 0.4% higher.
NIKE (NKE) shares were down more than 3% pre-bell after JPMorgan downgraded the company's stock to underweight from neutral and cut its price target to $40 from $47.
Commodities
Front-month US West Texas Intermediate crude oil fell by 2.8% to $78.07 per barrel on the New York Mercantile Exchange. Natural gas was down 3% at $2.70 per 1 million British Thermal Units. The United States Oil Fund (USO) decreased by 2.7%, while the United States Natural Gas Fund (UNG) was 2.3% lower.
Gold futures for November advanced by 0.7% to $4,119.50 an ounce on the Comex. Silver futures gained by 2.7% to reach $59.41 an ounce. SPDR Gold Shares (GLD) was up by 0.7%, and the iShares Silver Trust (SLV) was 3% higher.