US Stock Futures Slip After Two Days Of Record Advances: 'FOMO Could Add Another 5%-10%…,' Says Expert

U.S. futures slipped on Tuesday after two days of record-setting advances. Futures of major benchmark indices were trading lower.

Nasdaq and S&P 500 scaled new highs on Monday. The Donald Trump administration is reportedly lowering its aspirations for comprehensive reciprocal deals. Instead, it is favoring narrower agreements to avoid the reimposition of U.S. tariffs.

According to a Reuters report, the U.S. will resume trade negotiations with Canada immediately after Ottawa rescinded its digital services tax targeting U.S. technology firms.

Meanwhile, Bloomberg reported that the European Union is willing to accept a trade arrangement with the U.S. that includes a 10% universal tariff on many of the bloc's exports. However, it wants the U.S. to commit to lower rates on key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft.

The 10-year Treasury bond yielded 4.19% and the two-year bond was at 3.70%. The CME Group's FedWatch tool‘s projections show markets pricing a 78.8% likelihood of the Federal Reserve keeping the current interest rates unchanged in its July meeting.

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Tuesday. The SPY was down 0.15% at $616.92, while the QQQ declined 0.19% to $550.60, according to Benzinga Pro data.

Cues From Last Session:

U.S. stocks settled higher on Monday, with the S&P 500 hitting another record close, as information technology, financial, and real estate sectors recorded the biggest gains. However, energy and consumer discretionary stocks bucked the overall market trend, closing the session lower.

President Trump signaled openness to extending the July 9 deadline for reinstating reciprocal tariffs, adding that he remained optimistic about reaching key agreements in the coming weeks.

On the economic front, the Chicago PMI fell to 40.4 for June from 40.5 in May, and compared to market estimates of 42.7. The Dallas Fed's general business activity index for Texas manufacturing climbed to a reading of -12.7 in June compared to -15.3 in the previous month.

Hewlett-Packard Enterprise Co. HPE and Juniper Networks Inc. JNPR reached an agreement with the U.S. Department of Justice (DOJ) on Saturday.

Insights From Analysts:

Despite signals of a cooling economy and what he describes as a “too tight” Federal Reserve policy, economist Jeremy Siegel sees a bullish path ahead for equities, predicting major indexes could climb another “5%-10%” before any significant reckoning from tariff hits.

“FOMO could add another 5%-10% to major indexes before earning a reckoning with any tariff earnings hit,” he said.

Markets, already notching fresh all-time highs, are benefitting from a confluence of factors, including de-escalated geopolitical tensions and a retreat in oil prices, he explains.

Siegel points to falling bond yields, with the 10-year Treasury in the “4.25%-4.30% range,” as a clear sign that the Fed’s stance remains restrictive. While personal income data has cooled and housing is “feeling the pinch of too-high interest rates,” Siegel believes these factors provide “ample cover” for the Fed to pivot.

However, he doesn’t expect a rate cut at the July 30 meeting, anticipating 25-basis point cuts at each of the subsequent three meetings into early 2026.

According to Siegel, corporate America is coping, with companies like Nike beating estimates despite a “tariff hit.” The prevailing skepticism among traders, evidenced by an elevated VIX, suggests that “FOMO could add another 5%-10% to major indexes.”

This momentum, he states, will be driven by “squeezed shorts, AI productivity and margin improvements,” emphasizing that “AI adoption can drive outsized efficiency gains” even in less direct plays like small-cap value.

Meanwhile, giving her outlook on Gold, Aksha Kamboj, the executive chairperson of Aspect Global Ventures, said, “Gold prices appear to have stabilized at lower levels and are gradually moving higher, driven by expectations that the U.S. Federal Reserve may implement deeper interest rate cuts in 2025 than previously forecast.”

“Key events such as the upcoming July 9 tariff deadline and this week's jobs data are likely to be major market catalysts. Strong demand from central banks and domestic buyers is expected to provide support to the precious metal,” she added.

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep an eye on Tuesday:

• June’s S&P final U.S. manufacturing PMI will be out by 9:45 a.m., and May’s construction spending and job openings data will be released by 10:00 a.m. ET.
• June’s ISM manufacturing data will be out by 10:00 a.m., whereas auto sales data will also be released on Tuesday.

Stocks In Focus:

• MSC Industrial Direct Co. Inc. MSM was up 0.80% in premarket on Tuesday as analysts expect it to report quarterly earnings of $1.03 per share on revenue of $970.23 million before the opening bell.
• Constellation Brands Inc. STZ was 0.037% below the flatline as analysts expect it to report earnings of $3.31 per share on revenue of $2.55 billion, after the closing bell.
• Greenbrier Companies Inc. GBX was 0.11% higher as analysts expect it to report quarterly earnings of 98 cents per share on revenue of $785.72 million after the closing bell.
• Nektar Therapeutics NKTR tumbled 2.98% after disclosing a proposed public offering of common stock.
• Progress Software Corp. PRGS slipped 3.71% after posting better-than-expected earnings for the second quarter, while sales missed estimates. The company also raised its guidance for FY2025.
• AeroVironment Inc. AVAV declined 4.90% after it announced plans to offer $750 million of common stock and $600 million of convertible senior notes in proposed public offerings.
• Wolfspeed Inc. WOLF surged over 80% in premarket after implementing a prepackaged restructuring plan supported by most of its lenders. This move aims to cut its debt by ~$4.6 billion or 70% and annual cash interest payments by ~60%, positioning it for accelerated growth and profitability by late third quarter.
• Prestige Wealth Inc. PWM zoomed 68.09% after divesting its Prestige Assets International Inc. subsidiary and its three units on June 25, to sharpen its focus on technology-driven wealth management.
• Bitmine Immersion Technologies Inc. BMNR gained 21.33% after announcing a $250 million private placement to launch its Ethereum ETH/USD Treasury Strategy, aiming to become one of the largest publicly traded ETH holders.
• Gibo Holdings Ltd. GIBO declined over 7% after testing its AI-driven GIBO Click engine on uDrama, a rapidly growing global short drama platform.

Commodities, Gold, And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.14% to hover around $65.20 per barrel.

Gold Spot US Dollar rose 1.11% to hover around $3,339.46 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.33% at the 96.5570 level.

Asian markets ended on a mixed note on Tuesday, as Hong Kong's Hang Seng, Japan's Nikkei 225, Australia's ASX 200 indices declined, and India's S&P BSE Sensex, China’s CSI 300, and South Korea's Kospi indices rose. European markets were lower in early trade.

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