Dow Gains, Oil Drops
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U.S. stock futures slipped and oil prices rose on Tuesday, as investors were rattled by U.S. President Donald Trump's call for everyone to evacuate Tehran with the fifth-day of Israel-Iran fighting sowing fears of a broader regional conflict.
Markets are concerned about Iran's frequent threats to blockade the Strait of Hormuz, just as the US heads into peak summer demand season.
While Wall Street futures signal a tentative recovery, markets remain hostage to geopolitical developments in the Middle East. Any fresh escalation — particularly around energy supply routes like the Strait of Hormuz — could reignite volatility and keep global investors on edge throughout the week.
Money market moves show traders are pricing in about 48 basis points of rate cuts by the end of 2025, with a 55% chance of a 25-bps rate cut in September, according to CME Group's Fedwatch tool.