Stocks Extend Gains as Earnings Reports and Lower Oil Prices Boost Sentiment

US stock futures inched higher on Tuesday, maintaining momentum from Monday's rally. The gains were attributed to robust earnings reports and declining oil prices.

Treasury Secretary Scott Bessent said Washington is in talks with Iran, suggesting a potential deal to ease tensions in the Middle East. This news led to a drop of around 3% in West Texas Intermediate (WTI) crude futures and roughly 2% in Brent crude futures.

Falling oil prices and strength in tech stocks contributed to the rally on Monday, with President Donald Trump's statement to halt further military strikes on Iran also easing concerns of a wider conflict. This led to a new record high for the Dow Jones Industrial Average.

Investors now await earnings reports from major companies such as Pfizer, Caterpillar, McDonald's, Advanced Micro Devices, and SpaceX. Additionally, June factory orders and US international trade data will be closely monitored for further clues on the economy's strength.