Easing energy prices alleviate stagflation concerns; U.S. stock index futures extend gains

⑴ U.S. stock index futures edged higher on Tuesday, extending the rebound from the previous trading day. The decline in energy prices limited market concerns about the U.S. economy slipping into stagflation. Futures contracts for the three major indexes hovered slightly above flat. ⑵ After Trump stated that the Iran war may be nearing its end, benchmark crude oil prices retreated for the first time this month. This statement contrasts with earlier remarks from the administration, indicating that officials are cautious about the potential economic impact of rising oil prices. ⑶ Credit-sensitive sectors benefited from a decline in Treasury yields brought on by easing inflation concerns, giving major banks some breathing room after facing rising loan costs and recent turmoil in distressed private credit loans. ⑷ In addition, chipmaker stocks continued yesterday's strong rally after TSMC reported a 30% increase in sales for the first two months of this year.