Stock futures rose on Tuesday, fueled by strong quarterly results from companies such as Caterpillar and Palantir Technologies, as oil prices dropped amid optimism that a U.S.-Iran deal to reopen the Strait of Hormuz could be on the horizon. Dow Jones Industrial Average futures climbed 642 points, or 1.2%, led by a 10% rise in Caterpillar. S&P 500 futures gained 0.4%, while Nasdaq-100 futures popped 1.1%, as Palantir rallied more than 15% in premarket trading. Treasury Secretary Scott Bessent said in an interview on CNBC’s “Squawk Box” that “we are in talks with the Iranians.” He then added, “There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict.” Oil prices moved lower following Bessent’s comments, with West Texas Intermediate futures dropping 3% to around $77 per barrel. Brent crude, the international benchmark, declined 2% to roughly $81 a barrel. The major stock averages surged in Monday’s session, with the Dow closing at a record high, as Amazon eclipsed $3 trillion in market cap for the first time. Nvidia shares also rose higher along with Meta Platforms. Google parent Alphabet and Microsoft also popped during the day. With Monday’s move, the S&P 500 is now just 0.27% away from scoring a fresh all-time intraday high. Caterpillar reported better-than-expected Q2 numbers and upped its revenue growth guidance, with the industrial giant noting strong demand for its equipment. The company also said its tariff costs outlook for the full year should come in at the lower end of its previously expected range. Palantir similarly posted blowout results for the second quarter, which CEO Alex Karp described as “otherworldly” as a result of artificial intelligence sovereignty demand. Notably, the company’s commercial revenue jumped 149% to $764 million. Karp also said that the “sovereign AI revolution makes us very optimistic about the future.” Other tech names followed Palantir higher. Micron Technology gained 4%, while Marvell Technology advanced 8%. “Animal spirits are buoyant to begin the month,” said Jose Torres, senior economist at Interactive Brokers. He noted that the latest manufacturing and services sector data released Monday and “recent earnings calls boost confidence that capital return prospects could impress amid valuations that have become substantially cheaper during the deep tech selloff.” Economic data set for release include June factory orders as well as international trade figures for the month. Investors are closely watching SpaceX, which is set to report its first quarterly earnings as a public company later. The rocket company’s share price was up 1% ahead of the market open. Treasury yields edged higher early Tuesday as investors mulled the ongoing uncertainty around the state of negotiations in the Middle East. The yield on the 10-year U.S. Treasury note—the key benchmark for U.S. government borrowing—was about 1 basis point higher at 4.7021%. The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was broadly flat at 4.2621%. The longer-dated 30-year Treasury bond yield was last seen about 2 basis points higher at 5.2498%. Asia-Pacific markets ended higher on Tuesday. South Korea’s Kospi rose 1.62%, ending the trading day at 6,358.95. The small-cap Kosdaq Index jumped 5.8% to 780.72. Japan’s Nikkei 225 rose 0.32% to close at 63,957.53, and the Topix was little changed at 3,961.78. Australia’s S&P/ASX 200 closed 1.4% higher at 9,145.8. Mainland China’s CSI 300 rose more than 1% to 4,600.93. Gold prices were ​steady on Tuesday as investors ​grappled with uncertainty over ​the Federal Reserve’s interest-rate path and monitored ongoing developments in the Middle East for signs of a diplomatic resolution to the Iran war. Spot gold was little changed at $4,052.86 ⁠per ‌ounce, while U.S. gold futures were ⁠up 0.5% at $4,111.70. “Gold prices have been stuck in a narrow range over the past few weeks, trading roughly between $4,000 and $4,100, as investors remain uncertain about the Federal Reserve’s interest rate path,” said ActivTrades ‌senior analyst Ricardo Evangelista.