US Stocks Likely To Open Higher After Trump Announces Iran-Israel Ceasefire: FedEx, TD Synnex In Focus Ahead Of Earnings
U.S. Market Update: U.S. futures are trading higher following a positive trading day, with major indices like the Dow Jones and S&P 500 showing gains. The Federal Reserve is expected to maintain current interest rates, while analysts suggest focusing on equities over bonds amid geopolitical tensions.
Geopolitical Tensions and Investment Insights: President Trump announced a ceasefire in ongoing conflicts, but Iran's Foreign Minister denied any agreement. BlackRock highlights investment opportunities in the defense sector due to increasing geopolitical fragmentation and national security concerns.
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U.S. Steel and Aluminum Tariffs: The U.S. Trade Representative indicated that compliance requirements may lead to tariff adjustments on steel and aluminum, while tariffs imposed by the Trump administration will remain in place.
Increased Steel Production: The U.S. shipped 300 million metric tons more steel in 2025 compared to the previous year, surpassing Japan in steel production.
Recent Trade Agreements: The U.S. signed new trade agreements with Taiwan, Bangladesh, and Guatemala, highlighting a focus on expanding trade relations.
Market Impact and Sentiment: Despite potential tariff recalibrations, the market remains stable, with mixed performance in various ETFs tracking major indices.

Upcoming Economic Data Releases: A series of macroeconomic data, including the Federal Reserve's preferred inflation gauge and employment reports, are scheduled for release this week, with key reports on consumer spending and housing data expected.
Treasury Yields Movement: U.S. Treasury yields have edged lower, with the 10-year yield falling to 4.029% and the 30-year yield at 4.67%, as investors anticipate the release of delayed economic data during the holiday-shortened week.
Inflation Trends and Market Reactions: Recent consumer price index data showed a softer-than-expected inflation rate, which may ease concerns among Federal Reserve officials about persistent inflation, potentially influencing future monetary policy.
Market Sentiment and Predictions: Analysts suggest that while inflation is moving in the right direction, it remains elevated, and there are expectations for potential rate cuts later this year, although the odds for immediate cuts remain low.

Market Performance: U.S. stock futures showed slight increases, with Nasdaq 100 futures up 0.01%, S&P 500 futures rising 0.1%, and Dow futures gaining 0.05%, as investors reacted to easing inflation data and anticipated potential Federal Reserve rate cuts later this year.
Earnings Reports: Upcoming earnings reports from major companies such as Walmart, DoorDash, and Nvidia are being closely monitored by investors, with many S&P 500 companies already having reported results.
Investor Sentiment: There is ongoing uncertainty regarding the disruptive impact of AI on various sectors, including software and finance, which has influenced investor sentiment and market dynamics.
Global Market Trends: Broader markets are reacting to U.S. Treasury yields dropping to their lowest levels since December, while Asian markets experienced subdued trading due to the Lunar New Year holiday, with Japan's equity index futures showing slight weakness.

U.S. Consumer Prices: U.S. consumer prices rose lower than expected in January, with a 0.2% increase according to the Consumer Price Index (CPI) report, indicating a cooling labor market.
Inflation Expectations: U.S. citizens expect lower inflation in the near term, with one-year inflation expectations standing at 3.1% in January, down from 3.4% in December.
Federal Reserve Insights: Federal Reserve Bank of Chicago President Austan Goolsbee suggested that further rate cuts could occur if inflation trends towards the 2% target, although current inflation remains around 3%.
Market Reactions: U.S. equities ended the week mixed, with the S&P 500 ETF slightly declining while other ETFs, like the Invesco QQQ Trust, saw minor gains, reflecting bearish retail sentiment around the S&P 500.
- Federal Reserve's Goals: The Federal Reserve aims to manage interest rates effectively to combat inflation.
- Current Economic Outlook: While rates can still decrease, there is a need for visible progress in reducing inflation.

Supreme Court Schedule: The U.S. Supreme Court is set to return on February 20 after a four-week recess, with significant cases including President Trump's tariff policy on the agenda.
Upcoming Opinions: The Court is expected to issue opinions on February 24 and 25, in addition to those scheduled for February 20.
Betting Markets Insights: Prediction markets indicate that bets regarding the Supreme Court's potential decisions are valued at over $9 million, with varying expectations on rulings favoring Trump.
Probability of Rulings: Data shows a 29% chance that the Supreme Court will rule in favor of Trump's tariffs by 2028, with PolyMarket bettors slightly more optimistic at 30%.





