US equity futures were pointing higher on Tuesday as investors assess new US trade measures against Iran and Canada.
The S&P 500 and the Dow Jones Industrial Average rose 0.5% each in premarket activity, while the Nasdaq increased 1%. The S&P 500 and Nasdaq finished the previous trading session lower, while the Dow closed higher.
On Monday, the Treasury Department launched an economic campaign to cut off financial channels that support Iran.
"We are launching an economic onslaught against Iran's financial connections around the globe," Treasury Secretary Scott Bessent said Monday. "Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone."
Countries doing business with Iran will be given deadlines to shut down Iran-related activities, while entities aiding money laundering or sanctions evasion on behalf of Tehran could be cut off from the US financial system, according to a statement.
Iran reportedly promised to retaliate against the expanded US sanctions and expressed confidence that its major trading partners will resist Washington's pressure campaign, according to CNBC. China, Russia, India, Pakistan, Qatar and Turkey, among others, still trade with Tehran, Axios reported Monday.
West Texas Intermediate crude oil dropped 3% to $82.5 a barrel before the opening bell, while Brent fell 2.9% to $89.53.
In a social media post on Monday, President Donald Trump said the US will increase tariffs on imports of certain goods, including cars and trucks, from Canada to 50% starting next year, after trade talks between the two countries collapsed late last week.
Canadian Prime Minister Mark Carney said last week that Canada will match the US tariffs "dollar for dollar."
Treasury yields were down in premarket action, with the two-year retreating 1.7 basis points to 4.22% and the 10-year rate off 3.4 basis points to 4.67%.
Federal Reserve Chair Kevin Warsh's debut Jackson Hole speech on Friday is unlikely to help clear up investor confusion over the Treasury Department's bond market intervention, Morgan Stanley said in a note sent Monday. The firm's economists view the expansion in bond buybacks announced last week as evidence that the Treasury had become uncomfortable with a rise in long-term interest rates.
Markets are currently pricing in a 60% probability that the Fed will keep its benchmark rate steady in September, with the remaining odds in favor of a 25-basis-point hike, according to the CME FedWatch tool.
Tuesday's economic calendar has the Case-Shiller Home Price Index and the Federal Housing Finance Agency House Price Index, both for June, at 9 am ET. The consumer confidence and the Richmond Fed manufacturing index, both for August, are out at 10 am, along with the new home sales report for July.
Richmond Fed President Thomas Barkin is scheduled to speak at 8 am and later at 4 pm.
Dick's Sporting Goods (DKS) is set to release its latest financial results before the bell, among others. Intuit (INTU), Heico (HEI) and Zoom Communications (ZM) post their earnings after the markets close.
Gold dipped 0.1% to $4,692 per troy ounce, while bitcoin inclined 0.6% to $79,298.
