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Wall Street Set to Open Lower in Tuesday Trading as Investors Look for Signs of Middle East Peace Deal, Await Key Labor Data

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US stocks look set to open modestly lower in Tuesday's trading session as investors look for any signs that stalled Middle East may restart, and await key labor market data set for release later in the morning.

The Dow Jones Industrial Average futures were down 0.5%, S&P 500 futures were off 0.2%, and Nasdaq futures were edging 0.1% lower.

The Job Openings and Labor Turnover Survey (JOLTS) for April is set to be released at 10 am ET, which will give investors a good indication on the strength of the US labor market. The reading is expected to remain unchanged at 6.866 million job openings, according to Bloomberg.

Oil prices were moving lower, with front-month global benchmarks Brent crude declining 0.96% to $94.07 a barrel, while West Texas Intermediate crude was down 1.10% to $91.15 a barrel.

In other world markets, Japan's Nikkei closed 0.3% lower, Hong Kong's Hang Seng surged 2.5%, and China's Shanghai Composite gained 0.4%. Meanwhile in Europe's early afternoon session, the UK's FTSE 100 was edging 0.1% higher, Germany's DAX was up 0.7%, and France's CAC was rising 0.5%.

In equities, shares of Hewlett Packard Enterprise (HPE) surged 27% in Tuesday's premarket session after it reported fiscal Q2 earnings late Monday that beat analyst forecasts.

Marvell Technology (MRVL) shares climbed 18% after multiple news outlets reported that Nvidia (NVDA) Chief Executive Jensen Huang called the chipmaker the next "trillion-dollar company."

Shares of STMicroelectronics (STM) advanced 10% after it said Tuesday that it now expects to generate data center revenue of about $1 billion in 2026, compared with previous guidance of more than $500 million.

On the losing side, shares of Abivax (ABVX) tumbled 35% after the company's phase 3 maintenance trial evaluating obefazimod in ulcerative colitis met its primary endpoint and key secondary endpoints, though malignancy cases reported during the trial weighed on the results.

AEVEX's (AVEX) stock was down 11% pre-bell after it reported late Monday it launched a public offering of its class A common shares, along with certain selling shareholders.

And Praxis Precision Medicines' (PRAX) shares were down 10% after it reported late Monday that its phase 2/3 trial assessing vormatrigine to treat focal onset seizures failed to meet its primary endpoint of percent change in monthly seizure frequency from baseline.

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Tadawul Shares End Tuesday Muted on Partial Hezbollah-Israel Ceasefire Deal

Saudi Arabian equities were subdued on Tuesday, with the Tadawul All Share Index closing at 0.05% in the green as Lebanon and Israel took steps to de-escalate the Middle Eastern conflict.Investors cheered as Lebanon disclosed a partial ceasefire deal between Israel and Hezbollah. The deal will see Hezbollah cease its attacks on Israel, while the Israeli side will avoid attacking Beirut and Hezbollah-controlled suburbs.Market watchers welcomed the news as an Israel-Lebanon ceasefire deal was one of Iran's conditions to end its conflict with the US. However, the US said that the conflict between Israel and Hezbollah was not related to its conflict with Iran."A little later, further escalatory risks came into play, as Iran also threatened to target northern Israel if Israel continued attacks on Lebanon. That was according to Iran's ISNA news, who cited the country's Central Military Command. This marked a clear shift from the more hopeful tone of last week. The mood did then improve later in the session as Trump sought to de-escalate the tensions in Lebanon, with the US President claiming that Israel and Hezbollah agreed to "stop shooting" at each other after his calls with their respective leaders," Deutsche Bank Research said in a note.Back at home, Axelerated Solutions for Information and Communication Technology (SASE:9637) shares ticked up 3.96% as it signed a memorandum of understanding to acquire a 30% stake in the Shaheen Electronic Insurance Broker platform.Meanwhile, Anmat Technology for Trading (SASE:9639) won a contract from Saudi Energy Co. (SASE:5110) for an end-user device replacement and expansion project in the kingdom. Anmat Technology and Saudi Energy closed 5.86% and 1.65% higher, respectively.

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Asia Markets

Abu Dhabi, Dubai Stocks Fall Ahead of Key Economic Data

Stock trading in the United Arab Emirates ended lower on Tuesday as the FTSE ADX General Index declined 0.304%, while the DFM General Index was down 0.738%.The local economic calendar will see the release of the UAE S&P Global Purchasing Managers' Index report for May on Wednesday. The data, which provides investors with insights into the country's non-oil private sector activity, fell to 52.1 in April from 52.9 in March.On the geopolitical front, US President Donald Trump said that talks with Iran are continuing at a rapid pace, countering news that the latter is reportedly suspending indirect peace negotiations due to Israel's attacks in Lebanon. Trump also stated that both Hezbollah and Israel agreed to stop their attacks."Trump's intervention helped ease fears that the weekend's escalation in Lebanon would lead to a broader re-escalation between the US and Iran. Still, uncertainty over the possible US-Iran deal persists, with growing doubts that the Strait of Hormuz will reopen soon," Deutsche Bank Research said.Back home, the Abu Dhabi Securities Exchange and Jordan's Amman Stock Exchange launched their electronic link through the Tabadul platform to enable cross-market trading through brokerage firms and offer expanded investment opportunities for investors in both countries.On the corporate front, stocks of Agility Global (ADX:AGILITY) closed the session 0.64% in the green as it purchased an industrial plot of land in Saudi Arabia for 700 million Saudi riyals.Dubai-listed Emirates Central Cooling Systems (DFM:EMPOWER), d/b/a Empower, opened a command control center at its new headquarters in Dubai to manage operations and detect malfunctions across its plants and networks in the city. Its shares closed the session flat.

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Asia Markets

US Equity Indexes Recover After Trump Claims Israel, Hezbollah Agreed to De-escalate Fighting in Lebanon

US equity indexes rose after President Donald Trump claimed Israel and Hezbollah agreed to dial back attacks on each other in Lebanon, and as technology topped sectors.The Nasdaq Composite climbed 0.4% to 27,086.81, with the S&P 500 up 0.3% to 7,599.96 on Monday. The Dow Jones Industrial Average turned the corner, trading up less than 0.1% to 51,078.88.Technology, which jumped more than 5% last week, and energy were the only gainers. Utilities, consumer discretionary, and communication services led the decliners.President Donald Trump spoke separately with Israeli Prime Minister Benjamin Netanyahu and Hezbollah representatives, multiple media reports cited the US president as saying. The president said Hezbollah had "agreed that all shooting will stop - That Israel will not attack them, and they will not attack Israel."The US informed Qatar that strikes threatened by Israel on Beirut's southern suburbs have been cancelled following a call between Trump and Netanyahu, a Qatari diplomatic source told Al Jazeera. Qatar had initiated contact with the US last Sunday to push for de-escalation, and since then, its officials have engaged in mediation efforts to reinforce the US-Iran ceasefire."The (Israel Defense Forces) will continue to operate in southern Lebanon as planned," CNN reported late Monday, citing Netanyahu as saying in a short statement. "There is no ceasefire in Lebanon," Defense Minister Israel Katz said Monday evening, according to CNN.Brent futures remained elevated, up 4.5% to $95.22. West Texas Intermediate futures were up 5.6% to $92.25. But, both crude oil types were off their respective session highs in the final leg of trading for the commodities.US Treasury yields were mixed after trading higher earlier in the session across the term structure. The 10-year yield was unchanged at 4.45%, retreating from over 4.5% intraday. The two-year rose 2.1 basis points to 4.04%, also off highs from earlier in the session.Gold futures were down 1.7% to $4,514.20, and silver futures declined 1% to $75.13, with both precious metals clawing back declines.In company news, Nvidia (NVDA) has launched RTX Spark, a new AI chip that will be used in Microsoft (MSFT) Windows laptops and desktops. Nvidia's shares jumped 6.3%, and Microsoft rose 2.3%, among the top gainers on the Dow.Salesforce (CRM) surged 9.7%, among the Dow and S&P 500's biggest outperformers, after the company said it will invest $2 billion in France through 2030 to expand its artificial intelligence and cloud operations.In economic news, the Institute for Supply Management's US manufacturing index rose to 54.0 in May, the highest since May 2022, from 52.7 in April, compared with expectations for a 53.0 reading in a Bloomberg-compiled poll.However, the S&P Global US manufacturing index for May was revised down to 55.1 from the flash 55.3, compared with expectations of no revision in a Bloomberg-compiled survey. The May index is above the 54.5 reading reported in April, indicating expansion.US construction spending rose by 0.4% in April, versus a 0.3% increase expected in a survey compiled by Bloomberg and following a downwardly revised 0.2% increase in March.

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