Dow Jones futures rise as oil prices ease, strong corporate earnings
- Dow Jones futures gain support as WTI oil retreats after registering modest gains on the previous day.
- US index futures rise as markets shrug off US-Iran tensions, supported by strong corporate earnings.
- Wall Street closed lower on Monday as risk aversion rose on fears Middle East conflict could escalate again.
Dow Jones futures gain 0.24%, trading near 49,200 during the European hours on Tuesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 rise 0.30% to near 7,250, and the Nasdaq 100 futures advance 0.48% above 27,900.
US Index futures are supported as West Texas Intermediate (WTI) crude pulls back after gaining 2.84% in the previous day. Still, sentiment could turn cautious, with WTI holding above $100.00 per barrel amid escalating tensions between Iran and the US.
US future markets also rise on Tuesday as markets look past United States (US)-Iran tensions, supported by strong corporate earnings. Palantir Technologies topped Wall Street expectations for first-quarter revenue and profit, driven by robust demand from commercial clients and the US government, reporting 85% of annual revenue growth to $1.63 billion, above forecasts.
Vertex Pharmaceuticals also delivered solid Q1 2026 results, posting $2.99 billion in revenue and $4.47 EPS, both exceeding estimates. The company highlighted pipeline progress, particularly Povetacicept, and reaffirmed full-year revenue guidance of $12.95–$13.1 billion.
However, Wall Street ended Monday lower, with the Dow Jones falling 1.13%, the S&P 500 down 0.41%, and the Nasdaq 100 slipping 0.19%, as risk aversion increases on concerns that the Middle East conflict could intensify again.
CNBC reported Monday that the United Arab Emirates (UAE) was targeted by Iranian drones and missiles, while the US said it destroyed Iranian boats in the Strait of Hormuz. US President Donald Trump warned that Iran would be “blown off the face of the earth” if it targets US ships escorting commercial vessels through the Strait of Hormuz.
Several major US companies are due to report earnings on Tuesday, including Shopify, Pfizer, and Advanced Micro Devices. Investors will also monitor key economic releases, including the US Trade Balance data and the latest Job Openings and Labor Turnover Survey (JOLTS).
Dow Jones FAQs
The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.
Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.
Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.
There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
