Dow and S&P futures rise while Nasdaq 100 Falls on Tuesday

U.S. stock futures were swinging between gains and losses on Tuesday, as the Dow Jones and S&P 500 indices rose, while the Nasdaq 100 index fell, following Monday’s mixed close. The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ) were mixed in premarket trading, with the SPY rising 0.031% to $778.34 and the QQQ declining 0.42% to $742.93. The 10-year Treasury bond yielded 5.19% and the 2-year Treasury bond yielded 4.76% at last check, while the CME Group’s FedWatch tool projects a 19.4% likelihood of the Federal Reserve hiking interest rates after its October meeting.

Brent futures hovered around $105 and household costs surged by nearly $2,000, adding economic and strategic pressure on the U.S. As Treasury Secretary Scott Bessent noted that Iran’s economy is “collapsing” under pressure, high inflation, and elevated interest rates, with Iran threatening to target critical digital infrastructure. LPL Financial’s weekly commentary expects the U.S. Economy to continue expanding despite sector‑specific crosscurrents, driven primarily by strong business borrowing and corporate investment.

LPL Research highlights that commercial and industrial lending remains robust, noting that “even after a prolonged stretch of higher interest rates, credit looks more like a tailwind than a constraint for business spending.” While the housing sector remains “stuck in place” due to high mortgage rates and the lock‑in effect, LPL emphasizes that the economy “doesn’t need every sector firing at once to keep expanding.” Reduced loan spreads and strong corporate balance sheets are expected to pick up the slack.

For the stock market, LPL’s Strategic and Tactical Asset Allocation Committee maintains a tactical overweight on equities and an underweight on fixed income through 2026. LPL expects the “prospects for the macro backdrop to improve and the AI‑driven earnings boom will continue to support the broad equity market,” with a tactical focus on high‑quality companies. Investors can take reassurance in steady credit availability supporting ongoing growth.

Read the full story at benzinga.com.