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Stocks Fall Pre-Bell as Hopes for Near-Term US-Iran Peace Deal Fade

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Stocks Fall Pre-Bell as Hopes for Near-Term US-Iran Peace Deal Fade

US equity futures were tracking in the red on Tuesday amid fading hopes for a US-Iran peace deal, as a temporary ceasefire between the two countries expired without an extension.

The S&P 500 declined 0.6%, the Dow Jones Industrial Average edged down 0.1% and the Nasdaq fell 1.3% in premarket activity. The indexes finished the previous trading session lower.

A 60-day ceasefire agreement between the US and Iran signed in June expired on Monday, with no immediate signs of renewed negotiations. The two countries agreed to the memorandum of understanding to end their war and negotiate a final deal, but the truce collapsed as tensions over the control of the Strait of Hormuz escalated.

President Donald Trump told Fox News in an interview on Monday that he wasn't pressing for the Middle East conflict to end without Tehran conceding to his demands. "I have no time schedule," Trump reportedly said. "I'm not in a hurry."

In the same interview, Trump warned that the US could attack Oman if the Gulf nation interferes with its blockade of Iranian ships in the Strait of Hormuz. Iran and Oman are reported to have held negotiations recently on managing the crucial waterway.

Iran's top negotiator, Mohammad Bagher Ghalibaf, said Tuesday that the Strait of Hormuz will remain shut until the US meets the conditions of the interim deal signed in June, Reuters reported, citing state media.

Iranian Foreign Ministry spokesman Esmail Baghaei on Monday ruled out extending the memorandum of understanding, according to a CNBC report that cited state news agency Tasnim.

West Texas Intermediate crude oil increased 0.8% to $85.14 a barrel before the opening bell, while Brent edged 0.1% higher to $90.98.

Treasury yields were trending higher in premarket action, with the two-year rate rising 0.2 basis points to 4.18% and the 10-year rate adding 1.2 basis points to 4.74%.

Tuesday's economic calendar has the housing starts and permits data for July at 8:30 am ET, along with the import and export prices data for the same month. The industrial production report for July is out at 9:15 am, followed by the pending home sales index for the same month at 10 am.

Shares of Nike (NKE) rebounded 1.1% pre-bell after closing Monday trading with a 4% drop. Meta Platforms (META) fell 0.7% as the social media giant faces a trial brought by a coalition of 29 states over allegations that Facebook and Instagram were designed in ways that could adversely affect the mental health of children and teenagers.

Home Depot (HD) gained as second-quarter sales rose year over year and the home-improvement retailer reaffirmed its full-year outlook. Baidu's (BIDU) Nasdaq-listed stock slipped 4.9% as the Chinese technology firm reported weaker-than-expected second-quarter results.

Keysight Technologies (KEYS) posts its latest quarterly earnings after the markets close.

Gold declined 0.4% to $4,455 per troy ounce, while bitcoin slipped 0.3% to $64,142.

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Alibaba Launches AI Music Generation Model to Rival Suno, Udio
US Markets

Alibaba Launches AI Music Generation Model to Rival Suno, Udio

Alibaba Group (HKG:9988) has launched a beta version of its new AI music-generation model called HappyShrimp 1.0, according to a press release on Monday.The model, developed by Alibaba's Token Hub business group, converts texts to "a fully produced song" containing melody, arrangement, lyrics, and vocals, the Chinese tech company said."HappyShrimp 1.0 allows users to generate complete tracks from a single prompt, whether based on an emotion, a story concept, or a target genre," Alibaba said, noting that the model can produce tracks across genres like Chinese style, pop, R&B/soul, hip hop, rock, funk, electronic, classical, and jazz.The company did not disclose how it plans to monetize the music model. HappyShrimp 1.0 would likely rival AI music startups like Suno and Udio, as well as Google's MusicFX and Meta's AudioCraft.The launch expands Alibaba's generative AI offerings into the audio sector, further boosting its Cloud business. In the fiscal year ended March 31, Alibaba Cloud's external revenue growth accelerated to 40%, with AI-related products making up 30% of the total.Earlier this month, Alibaba Cloud launched Qwen3.8-Max, which it described as its "largest and most capable flagship model to date." The model features 2.4 trillion parameters and supports a context window of up to 1 million tokens."Alibaba's full-stack AI investments have progressed from incubation to commercialization at scale," Alibaba CEO Eddie Wu said in May.At the time, the company said it expects AI model and application services annualized recurring revenue to top 10 billion yuan in the June quarter and 30 billion yuan by the end of the year.Alibaba expects AI-related product revenue to surpass 50% of Cloud Intelligence Group's total external revenue to become the unit's primary growth driver.In March, Wu said Alibaba aims to surpass $100 billion in combined cloud and AI external revenue over the next five years.

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Update: Equities Fall, Oil Rallies as US-Iran Ceasefire Expires
US Markets

Update: Equities Fall, Oil Rallies as US-Iran Ceasefire Expires

(Updates with market moves at the end of the day, and other changes, if any.)Stocks on Wall Street fell Monday and oil prices advanced as a ceasefire between the US and Iran expired, with both sides showing no interest in an extension.The S&P 500 and the Dow Jones Industrial Average shed 0.5% each to close at 7,745.06 and 53,459.78, respectively. The Nasdaq Composite lost 0.3% to 26,644.91. Except energy, all sectors were in the red, led by communication services and consumer staples.West Texas Intermediate crude oil was up 2.4% at $84.41 a barrel in Monday late-afternoon trade, while Brent rose 2.4% to $90.64.In June, the US and Iran agreed to a memorandum of understanding to end their war and negotiate a final deal. However, the truce apparently collapsed as tensions over the control of the Strait of Hormuz escalated.Iranian Foreign Ministry spokesman Esmail Baghaei ruled out extending the memorandum of understanding, according to a CNBC report that cited state news agency Tasnim.President Donald Trump warned that the US could attack Oman if the Gulf nation interferes with the blockade of Iranian ships in the Strait of Hormuz, The Wall Street Journal reported, citing an interview with Fox News.On Saturday, Israeli strikes in southern Lebanon left at least 11 people dead, Reuters reported, citing the Lebanese health ministry. Traffic through the strategic waterway slowed as three vessels operated by Abu Dhabi National Oil Co. were attacked in transit last week."Prices remained supported by renewed fighting in Lebanon and attacks on vessels in the Strait of Hormuz, raising concerns over regional supply disruptions and complicating prospects for a US-Iran deal," ING Bank said in a report Monday.US Treasury yields were higher, with the 10-year rate up 3.2 basis points at 4.73% and the two-year rate rising 1.3 basis points to 4.18%.In company news, JetBlue Airways (JBLU) shares slumped 7.3%, as Seaport Research Partners downgraded its rating on the air carrier's stock. JetBlue's balance sheet woes could worsen as the Strait of Hormuz appears unlikely to reopen anytime soon, potentially prolonging jet fuel volatility, Seaport said in a note.Shares of American Airlines Group (AAL), Southwest Airlines (LUV), United Airlines (UAL) and Delta Air Lines (DAL) were also in the red.Retail giant Walmart (WMT) is scheduled to release its latest financial results later this week, along with Home Depot (HD), TJX (TJX), Lowe's (LOW), Target (TGT), Ross Stores (ROST) and BJ's Wholesale Club (BJ).S&P 500 companies' annual growth in second-quarter earnings and revenue largely held steady week over week, Oppenheimer Asset Management said Monday.The Federal Reserve is scheduled to post minutes of its July policy meeting Wednesday, which will be assessed for fresh insight on the central bank's monetary policy. At the meeting, policymakers left interest rates unchanged in a divided decision, with three regional presidents calling for policy tightening.In economic news, homebuilder confidence in the US unexpectedly ticked higher this month, though builders continued to deal with rising construction costs amid a renewed surge in gas and diesel prices, the National Association of Home Builders and Wells Fargo said.Gold was up 0.9% at $4,475.40 per troy ounce, while silver advanced 1.7% to $66.20 per ounce.

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Housing, Childcare Consume Over Half of Typical US Family's Annual Income, Redfin Says
US Markets

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