U.S. equity futures showed little movement on Tuesday as markets balanced another increase in oil prices against major developments in artificial intelligence and semiconductors, with upcoming inflation figures also keeping investors cautious.
At 03:05 ET (07:05 GMT), Dow futures slipped 51 points, or 0.1%, while futures tracking the S&P 500 and Nasdaq 100 were broadly unchanged.
Stocks had finished lower in the previous session after prospects for reopening the Strait of Hormuz deteriorated, sending crude prices higher. The renewed energy rally raised concerns that more expensive fuel could add to inflationary pressures and make the monetary policy outlook more difficult for central banks.
Treasury yields also moved higher, creating another headwind for equities.
Nvidia financing plan puts AI spending back under the spotlight
Nvidia (NASDAQ:NVDA) confirmed an extensive AI infrastructure arrangement involving financial groups including Apollo, BlackRock, Goldman Sachs and KKR.
The initiative is designed to mobilise more than $500 billion in third-party capital for infrastructure needed to support the continued expansion of artificial intelligence.
Nvidia shares declined more than 2% after the Financial Times first reported the development.
Vital Knowledge analysts described the move as another case of Nvidia “extending its balance sheet to drive AI infrastructure demand.”
The reaction highlights growing sensitivity towards the scale of spending required to support the AI boom. Questions around the sustainability of these investments have weighed on technology sentiment in recent weeks, despite broadly resilient quarterly results from S&P 500 companies.
Iran reparations dispute reduces hopes for rapid agreement
Geopolitical risk remains another major consideration for markets after U.S. President Donald Trump rejected fresh demands from Iran, reducing expectations for an imminent breakthrough in peace negotiations.
Tehran’s proposals included a demand for the United States to pay reparations for damage caused during the conflict, which has continued for more than five months.
Trump said Iranian negotiators had not previously raised the issue and argued that Iran should instead compensate Washington “for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts.”
The continued diplomatic deadlock has kept the Strait of Hormuz effectively closed, restricting an important route for global energy supplies. Before fighting began in late February, roughly one-fifth of global oil and liquefied natural gas moved through the waterway.
Brent crude futures rose another 1.8% to $89.34 a barrel as traders responded to the reduced likelihood of a near-term agreement.
Riot Platforms rallies after Anthropic identified as data centre customer
Riot Platforms (NASDAQ:RIOT) surged more than 20% in after-hours trading after Anthropic was reportedly identified as the customer behind Riot’s previously announced data centre contract.
Bloomberg reported that the AI company agreed to pay $9.1 billion under a long-term arrangement securing computing capacity as it expands infrastructure for its Claude products.
The contract covers 191 megawatts at Riot’s Rockdale campus in Texas and is scheduled to run until June 2048.
Riot expects $9.1 billion of revenue from the initial contract period. Two five-year extension options could potentially increase total sales to as much as $16.1 billion.
Intel expands equity raise to $20 billion
Intel Corporation (NASDAQ:INTC) completed an upsized $20 billion stock offering as the semiconductor manufacturer seeks additional financial capacity for its manufacturing plans.
The company priced 210.5 million common shares at $95 each, representing a 2.6% discount to its previous closing price. Underwriters also received a 30-day option covering up to another 31.6 million shares.
Intel had initially targeted proceeds of $15 billion before increasing the offering. The company said the funds would be available for general corporate purposes.
Intel shares declined more than 4% on Monday. The stock has nevertheless risen sharply this year as investors assess the company’s plans for substantial spending on manufacturing facilities and advanced chip packaging as it competes with foundry rivals including TSMC.
RBA pauses after 75 basis points of rate increases
The Reserve Bank of Australia kept its benchmark interest rate at 4.35%, matching market expectations after recent inflation figures showed signs of moderation.
The decision was unanimous and follows a cumulative 75 basis points of rate increases this year.
A softer-than-expected second-quarter consumer inflation reading had strengthened expectations for the RBA to hold rates, while policymakers also lowered their inflation projections for the end of 2026.
The central bank nevertheless warned that headline and underlying inflation remain high and could stay elevated in the near term.
Fuel costs associated with the Iran conflict were highlighted as an important source of inflationary pressure, meaning policymakers have not ruled out further interest-rate increases.
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