US equity futures rose pre-bell Tuesday as oil prices receded on optimism that a US-Iran peace agreement could happen soon.
Dow Jones Industrial Average futures were 0.2% higher, S&P 500 futures were up 0.4%, and Nasdaq futures were 0.9% higher.
West Texas Intermediate crude oil dropped under $90 a barrel as President Donald Trump said a deal to end the Middle East war could be reached in "two to three days," with the Strait of Hormuz reopening "immediately" after the agreement is signed. The two countries are nearing a deal "that will not in any way allow nuclear weapons," Trump told reporters after attending the NBA Finals in New York City.
Traders observed the latest round of earnings, with J.M. Smucker (SJM) posting higher fiscal Q4 adjusted earnings and revenue.
Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.6% at $92.79 per barrel and US West Texas Intermediate crude 1.9% lower at $89.57 per barrel.
The international trade in goods report, scheduled for release at 8:30 am ET, is expected to post a deficit narrowing to $56.1 billion from $60.3 billion in the prior month, according to estimates compiled by Bloomberg.
The existing home sales report, scheduled for release at 10 am ET, is expected to show an increase of 1.1% for May after a gain of 0.2% in the prior month.