US stock futures traded mixed on Tuesday as investors prepared for a pivotal week dominated by major technology earnings and the Federal Reserve’s latest policy meeting, while continuing to monitor geopolitical tensions in the Middle East.
At 07:43 GMT, Dow Jones futures edged 0.1% higher, S&P 500 futures slipped 0.3%, and Nasdaq 100 futures lost 0.9%, reflecting continued weakness in technology stocks.
Wall Street ended Monday with mixed results after lower oil prices and easing Treasury yields lifted sentiment following a temporary pause in hostilities between the United States and Iran. Even so, markets remained cautious as investors assessed the risk that higher energy costs could reignite inflation and influence future Federal Reserve policy.
Artificial intelligence remained a major focus. Investors are increasingly questioning whether the enormous levels of spending on AI infrastructure will continue to deliver strong returns, making this week’s earnings reports particularly significant.
Nvidia (NASDAQ:NVDA) came under pressure after reports suggested the company could provide financial guarantees worth approximately $250 billion for a large OpenAI data centre project. Meanwhile, increased competition from Chinese memory chip producer CXMT and reports that Apple (NASDAQ:AAPL) has requested approval to use Chinese-made chips in selected products added further pressure to semiconductor shares.
The Philadelphia Semiconductor Index declined 2.2%, with the Wall Street Journal reporting that every constituent closed below its 50-day moving average for the first time since April 2025.
Investors Await Results From Technology Leaders
The corporate earnings calendar intensifies this week.
Before markets open, Coca-Cola Company (NYSE:KO) and Boeing (NYSE:BA) are scheduled to report quarterly earnings. Investors will assess consumer demand trends at Coca-Cola and continue monitoring Boeing’s operational recovery.
After the market closes, Visa (NYSE:V) will release results that could provide fresh insight into consumer spending patterns, while Seagate Technology (NASDAQ:STX) is expected to offer additional commentary on AI-related demand.
The biggest releases will come from Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), whose investment in AI infrastructure continues to shape market expectations for the sector.
Federal Reserve Meeting Takes Centre Stage
Markets are also focused on the Federal Reserve’s two-day policy meeting, which concludes on Wednesday with its latest interest rate announcement.
Although recent inflation data has shown signs of easing, volatility in energy markets linked to Middle East tensions continues to cloud the outlook. Meanwhile, the US labour market remains relatively resilient.
According to CME FedWatch, investors currently see roughly a two-thirds chance that the Federal Reserve will keep interest rates unchanged between 3.5% and 3.75%, while a 25-basis-point increase remains a possibility.
Trump and Netanyahu Prepare for White House Meeting
President Donald Trump is expected to host Israeli Prime Minister Benjamin Netanyahu at the White House on Wednesday as diplomatic discussions continue alongside the conflict involving Iran.
While direct military exchanges have paused in recent days, uncertainty remains over the prospects for a lasting ceasefire.
Trump described negotiations with Tehran as “good talks,” while warning that military action could resume if diplomacy fails.
Asian Chip Stocks Extend Global Technology Weakness
Technology shares in Asia also came under heavy selling pressure.
South Korea’s KOSPI fell sharply as semiconductor manufacturers were hit by concerns over AI-related valuations and continued capital expenditure across the industry.
The announcement of new US tariffs on South Korean imports added to investor caution.
SK Hynix Inc (NASDAQ:SKHY) and Samsung Electronics Co Ltd (USOTC:SSNHZ) both recorded steep declines, contributing to the broader weakness across global semiconductor markets.
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