Dipo Olowookere
By Investors Hub
The major U.S. index futures are pointing to a lower opening on Tuesday, with stocks likely to give back ground after ending the previous session mostly higher.
Geopolitical concerns may weigh on the markets ahead of President Donald Trump?s announcement of his decision on the Iran nuclear deal.
Trump is widely expected to withdraw from the agreement, which lifted sanctions on Iran in exchange for limits on the country?s nuclear program.
Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.
After an early move to the upside, stocks gave back ground in afternoon trading on Monday but managed to end the day higher. With the gains on the day, the major averages extended the rally seen in the previous session.
The Dow rose 94.81 points or 0.4 percent to 24,357.32, the Nasdaq advanced 55.60 points or 0.8 percent to 7,265.23 and the S&P 500 climbed 9.21 points or 0.4 percent to 2,672.63.
Stocks initially continued to benefit from the upward momentum seen last Friday in response to the Labor Department’s monthly jobs report.
While the report showed weaker than expected job growth in the month of April, the unemployment rate fell to its lowest level since 2000.
The jobs report reinforced expectations that the Federal Reserve will raise interest rates next month, although subdued wage growth has led traders to believe the Fed will not increase rates too aggressively.
The pullback seen in afternoon trading came as President Donald Trump announced via Twitter that he will reveal his decision on the Iran nuclear deal on Tuesday.
Computer hardware, biotechnology and brokerage stocks saw significant strength on the day, while telecom and tobacco stocks showed notable moves to the downside.
