U.S. equity futures traded without a clear direction on Tuesday, as investors weighed reports that President Donald Trump is dissatisfied with Iran’s latest proposal to end the ongoing two-month conflict. At the same time, corporate updates and central bank signals kept sentiment cautious. OpenAI is said to have fallen short of internal revenue goals, while BP (NYSE:BP) shares advanced on the back of stronger oil and gas prices. Meanwhile, the Bank of Japan left rates unchanged but signaled it remains prepared to tighten policy if inflation pressures persist.
Futures drift as oil strengthens and earnings season ramps up
At 03:28 ET, Dow futures were broadly flat, S&P 500 futures were down 14 points, or 0.2%, and Nasdaq 100 futures had declined by 117 points, or 0.4%.
In the prior session, the S&P 500 and Nasdaq Composite both finished higher, while the Dow Jones Industrial Average ended in negative territory.
Market participants are also bracing for one of the busiest stretches of the reporting season, with about 35% of S&P 500 companies set to release results in the coming days. On Monday, Verizon (NYSE:VZ) upgraded its full-year earnings outlook, while Domino’s Pizza (NASDAQ:DPZ) warned of weaker demand, sending its shares down 8.8%. Earnings from Visa (NYSE:V), Coca-Cola (NYSE:KO) and T-Mobile US (NASDAQ:TMUS) are due later today.
Big Tech names later this week are expected to provide key updates on spending tied to artificial intelligence infrastructure—an area that has helped underpin equity markets despite geopolitical risks and energy-related concerns.
Trump weighs Iran proposal as diplomatic progress stalls
Reports indicate that Trump is unhappy with Iran’s latest offer, which would end hostilities and reopen the Strait of Hormuz but defer discussions over Tehran’s nuclear ambitions.
Trump has repeatedly stated that dismantling Iran’s nuclear capabilities—particularly any route to a nuclear weapon—has been a central aim of the joint U.S.-Israeli offensive launched in late February. Reuters, citing a U.S. official, said this stance has contributed to his dissatisfaction with the proposal.
Hopes for renewed talks were also dampened after Trump canceled plans to send negotiators to Pakistan for a fresh round of discussions. Iran’s foreign minister visited Islamabad twice over the weekend before meeting Russian President Vladimir Putin on Monday and securing his backing.
Despite these diplomatic efforts, the Strait of Hormuz remains largely closed to shipping traffic. The key chokepoint, which handles roughly one-fifth of global oil flows, has been heavily restricted for weeks, helping push crude prices well above pre-conflict levels.
Concerns are mounting that higher energy costs could trigger a renewed surge in global inflation, potentially forcing central banks to respond with higher interest rates. Brent crude futures continued to climb on Tuesday.
OpenAI falls short of internal targets
OpenAI has reportedly missed internal benchmarks for both user growth and revenue, according to The Wall Street Journal, raising fresh concerns over its ability to sustain heavy spending.
The company is said to have failed to reach its target of one billion weekly active users for ChatGPT by the end of 2025 and also missed several monthly revenue goals earlier this year.
Chief Financial Officer Sarah Friar reportedly warned executives that slower revenue growth could jeopardize the company’s ability to fund future data center commitments. Board members have also questioned recent infrastructure deals and CEO Sam Altman’s push to secure additional computing capacity.
These concerns come as OpenAI moves closer to a potential IPO later this year, prompting a renewed focus on cost discipline and operational efficiency.
BP shares rise on strong earnings performance
BP (NYSE:BP) shares moved higher in London trading, supported by elevated oil and gas prices that boosted profitability.
The company reported underlying replacement cost profit of $3.2 billion, more than doubling from $1.38 billion a year earlier, reflecting the benefits of tighter global supply conditions.
Bank of Japan holds rates but signals tightening bias
The Bank of Japan left its policy rate unchanged at 0.75%, in line with expectations, but warned that rising inflation and softer growth tied to Middle East tensions could shape future decisions.
The vote was not unanimous, with three members of the nine-person board backing a rate increase—the highest level of dissent since 2016.
The central bank stated that “[g]iven that underlying inflation has been approaching 2% and real interest rates are at significantly low levels,” it will “continue to raise its policy rate in response to developments in the economy, prices and financial conditions.”
Analysts at Capital Economics said: “While the Bank of Japan left interest rates unchanged today, its Outlook report was hawkish and we’re sticking to our forecast that the Bank will hike rates in June.”
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