U.S. equity futures moved lower early Tuesday while oil prices stayed above $110 a barrel, as investors focused on the approaching deadline set by President Donald Trump for Iran to accept a ceasefire agreement. Trump signaled that diplomacy remains possible but warned the United States could strike key Iranian infrastructure—including bridges and power plants—if no deal is reached by Tuesday evening. In corporate developments, Broadcom (NASDAQ:AVGO) shares jumped after announcing a new partnership with Google, while Samsung Electronics (USOTC:SSNHZ) released strong preliminary earnings.
U.S. futures edge lower
U.S. stock futures declined on Tuesday morning as markets turned cautious ahead of Trump’s ultimatum to Iran to agree to a ceasefire or face significant military action targeting infrastructure.
By 03:15 ET, Dow futures had fallen 104 points, or 0.2%. Futures tied to the S&P 500 dropped 25 points, or 0.4%, while Nasdaq 100 futures slid 118 points, or 0.5%.
Despite the overnight decline in futures, the three major U.S. stock indices closed the previous trading session higher as investors searched for signs that negotiations might bring an end to the conflict that has lasted for more than a month.
At the same time, markets continued to evaluate the economic effects of the war. Data released Monday showed that U.S. services activity expanded in March but at a slower pace than economists expected. Employment in the sector declined, and the prices-paid component—an indicator of inflationary pressures—rose to its highest level since October 2022.
Investors were also watching developments in the $1.8 trillion private credit market. Shares of Blue Owl Capital (NYSE:OWL), which has been closely associated with concerns in that sector, fell to a record closing low after the company announced restrictions on withdrawals from two of its funds following a rise in redemption requests.
Oil holds above $110
Oil markets remained elevated as tanker traffic through the Strait of Hormuz continued to face major disruption.
Brent crude futures, the global benchmark, climbed 1.5% to $111.45 per barrel, while U.S. West Texas Intermediate crude futures rose 2.4% to $115.14 per barrel.
The Strait of Hormuz, a key shipping corridor off Iran’s southern coastline through which roughly one-fifth of global oil supply normally passes, has been largely closed to tanker movements for weeks, raising fears of a significant disruption to global energy flows. Many Asian economies depend heavily on energy shipments through the strait, while European countries also rely on natural gas supplies originating from the Persian Gulf.
Speaking to reporters Monday, Trump said any ceasefire agreement must include Iran’s commitment to reopen the shipping route. If Tehran fails to meet the Tuesday deadline of 8 p.m. Eastern time, he warned that U.S. strikes would target bridges and power plants so severely that Iran would need “100 years to rebuild.”
Even so, Trump suggested that diplomacy remains possible, saying Iran would “like to make a deal.”
Broadcom rises after Google agreement
Broadcom shares surged in after-hours trading after the semiconductor company announced a long-term partnership with Google to develop and support custom processors optimized for artificial intelligence applications.
The company also said it will provide networking hardware and other infrastructure components for Google’s AI systems through 2031.
In a separate arrangement, Broadcom agreed to grant AI startup Anthropic access to around 3.5 gigawatts of computing power built on Google’s AI processors beginning next year.
Analysts at Vital Knowledge said the deals point to “upside risk to Broadcom’s” earlier projection that artificial intelligence could generate more than $100 billion in revenue by 2027.
Samsung forecasts strong profit growth
Samsung Electronics reported preliminary guidance on Tuesday pointing to a sharp increase in first-quarter profits, fueled by strong demand for AI-related semiconductors that boosted its chip division.
The company said operating profit for the January–March period is expected to reach approximately 57.2 trillion won ($38 billion), more than eight times the 6.69 trillion won recorded during the same quarter a year earlier.
Revenue is projected to reach about 133 trillion won, compared with 79.14 trillion won in the prior-year period.
The forecast highlights a strong recovery in the memory chip market, where demand for high-bandwidth memory (HBM) and other AI-focused semiconductors has surged as generative AI technologies continue to expand rapidly.
Pershing Square targets Universal Music Group
Meanwhile, shares of Universal Music Group (EU:UMG) soared more than 14% in Amsterdam after Bill Ackman’s Pershing Square Capital announced a proposal to acquire the music company in a cash-and-stock transaction valued at more than €55 billion.
Pershing Square said the plan involves merging Universal with Pershing Square Sparc Holdings to create a new Nevada-based entity that would shift the company’s listing to the New York Stock Exchange. Universal Music Group began trading in Amsterdam in 2021 following its spin-off from media conglomerate Vivendi (EU:VIV).
Ackman said in a statement that Universal’s share price has “languished due to a combination of issues that are unrelated” to the underlying business and could be “addressed with this transaction.”
Shares of European media groups including Vivendi and Bollore (EU:BOL) also rallied following the announcement of Pershing Square’s proposal.
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