Blog

U.S. equity futures move lower ahead of Nvidia earnings

U.S. stock futures traded lower early Tuesday, suggesting Wall Street may open under pressure as investors remain cautious following Monday’s uneven session.

Technology shares are expected to remain in focus as concerns grow that valuations across the sector have become stretched after the market’s recent surge to record highs.

Traders are now turning their attention toward Nvidia’s (NASDAQ:NVDA) quarterly earnings report due after Wednesday’s close, with markets closely watching for signals on artificial intelligence demand and future growth expectations.

Given Nvidia’s dominant position in the AI industry, the company’s results and outlook are expected to play a major role in shaping broader market sentiment.

Oil prices and bond yields continue to influence sentiment

Investors are also keeping a close eye on elevated oil prices and the recent rise in Treasury yields, although both eased modestly during Tuesday morning trading.

“While the Nasdaq remains near highs and the broader AI trade is still intact, recent sessions have seen some profit-taking in semiconductors and mega-cap tech as yields rise and positioning looks increasingly stretched,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, “The market is not abandoning the earnings and AI story but the combination of higher oil, higher yields and extremely strong positioning is making it harder for the sector to continue its near-vertical ascent without pauses or pullbacks.”

Markets recover late after another volatile session

Following Friday’s sharp decline, U.S. stocks remained under pressure for much of Monday before staging a partial recovery late in the trading session.

The major indexes finished well above their intraday lows, with the Dow Jones Industrial Average managing to close in positive territory.

The Dow gained 159.95 points, or 0.3%, ending at 49,686.12. The S&P 500 slipped 5.45 points, or 0.1%, to close at 7,403.05, while the Nasdaq Composite dropped 134.41 points, or 0.5%, to 26,090.73.

Geopolitical tensions remain a key market risk

Early selling pressure on Wall Street was linked to persistent concerns over the conflict in the Middle East after President Donald Trump warned that for Iran the “clock is ticking.”

Posting on Truth Social, Trump said Iran “better get moving, FAST, or there won’t be anything left of them,” sparking renewed concerns that the United States could resume military operations.

Axios reported, citing two U.S. officials, that Trump is expected to meet with senior national security advisers on Tuesday in the Situation Room to review military options.

The conflict between the United States and Iran has effectively disrupted shipping through the Strait of Hormuz, a critical route for global oil flows, intensifying concerns about inflation and interest rate expectations.

Treasury yields surged on Friday as traders increasingly speculated that the Federal Reserve’s next move could potentially involve raising rates rather than cutting them.

Oil prices and Treasury yields continued climbing through much of Monday’s session, adding to negative sentiment across equity markets.

However, stocks trimmed losses later in the day after Trump said he had chosen to delay military action against Iran following appeals from Middle Eastern leaders.

Trump said he instructed the military to remain “prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached.”

Semiconductor shares lead declines while energy stocks outperform

Chipmakers recorded some of the steepest losses during Monday’s session, dragging the Philadelphia Semiconductor Index down 2.5%.

Computer hardware companies also faced heavy selling pressure, with the NYSE Arca Computer Hardware Index falling 2.2%.

Meanwhile, oil service companies benefited from higher crude prices, helping lift the Philadelphia Oil Service Index by 3.4%.

Oil producers, telecom companies and commercial real estate stocks also posted gains, helping reduce the broader market’s overall losses.

U.S. futures steady as investors await major tech earnings

U.S. equity futures traded close to unchanged early Tuesday as markets balanced renewed hopes for a diplomatic breakthrough between the United States and Iran against anticipation ahead of a critical week for technology earnings.

As of 03:30 ET, Dow Jones futures were little changed, S&P 500 futures slipped 0.1%, and Nasdaq 100 futures eased 0.2%.

Investors are preparing for earnings from Home Depot (NYSE:HD), the first in a series of reports from major consumer-focused retailers due in the coming days. However, the spotlight remains firmly on semiconductor heavyweight Nvidia (NASDAQ:NVDA), whose results are expected to provide a key gauge of the artificial intelligence-driven investment wave that has continued to underpin equity markets despite ongoing geopolitical tensions.

Wall Street closed Monday on a mixed note, with the Nasdaq Composite and S&P 500 both ending lower, while the Dow Jones Industrial Average gained 0.3%.

Technology stocks faced some profit-taking pressure, while higher Treasury yields and elevated oil prices also weighed on broader market sentiment.

Trump signals pause in military escalation with Iran

Investor confidence improved later in the session after comments from President Donald Trump suggested a possible easing of tensions in the Middle East.

Analysts at Deutsche Bank said Trump’s remarks on social media helped the S&P 500 recover most of its earlier losses.

Trump stated that he had halted plans for additional military strikes against Iran following requests from several Gulf leaders. He said that “serious negotiations are now taking place,” adding that, “in the opinion” of Gulf officials, a “Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond.”

The president also stressed that any agreement would mean “NO NUCLEAR WEAPONS FOR IRAN!” while warning that U.S. forces remain ready to launch a “full, large scale assault on Iran, on a moment’s notice” if talks fail.

“The news helped remove some of the risk premium that had built up over the course of yesterday,” Deutsche Bank analysts noted.

Iranian state media separately reported that Tehran had delivered a revised peace proposal to Washington that would include ending hostilities across all fronts, the withdrawal of U.S. forces from areas near Iran and compensation for damage caused by American and Israeli strikes.

Oil prices ease while inflation concerns persist

Brent crude futures, the global benchmark for oil prices, were last down 1.8% at $110.07 per barrel. Before the start of the joint U.S.-Israeli offensive against Iran in late February, Brent had been trading near $70 per barrel.

Markets remain concerned that prolonged disruption to energy supplies could reignite inflationary pressures globally and force central banks to maintain elevated interest rates for longer.

At the same time, softer oil prices helped stabilize bond markets following sharp sell-offs in recent sessions. Yields on benchmark 10-year U.S. Treasuries pulled back from their highest levels in more than a year, while two-year Treasury yields also edged lower.

Government bond yields across the eurozone, including Germany, France, Spain and Italy, also declined as demand for safer fixed-income assets improved.

“While near-term yield volatility may keep markets on edge, current attractive yields and growth risks point to an appealing risk-return profile for short- and medium-maturity quality bonds,” analysts at UBS Global Wealth Management said.

Google and Blackstone unveil AI cloud computing venture

Alphabet’s Google (NASDAQ:GOOG) and Blackstone (NYSE:BX) announced plans to establish a new artificial intelligence cloud company powered by Google-designed chips.

Blackstone will invest $5 billion and hold a majority ownership stake in the venture, according to a joint statement from the companies.

The project aims to bring 500 megawatts of computing capacity online by 2027, with ambitions to significantly scale operations over time.

The new venture is expected to compete with AI infrastructure providers such as CoreWeave while also strengthening Google’s push to commercialize its own AI chip technology, increasing competitive pressure on Nvidia.

Japanese economic growth beats expectations

Japan’s economy expanded faster than anticipated during the first quarter, supported by resilient private consumption and stronger exports.

Preliminary government data released Tuesday showed annualized gross domestic product growth of 2.1% for the January-to-March period, above market expectations of 1.7% and accelerating from a revised 0.8% increase in the previous quarter.

On a quarterly basis, GDP rose 0.5%, exceeding forecasts for 0.4% growth and improving from the prior quarter’s 0.2% gain.

Despite the stronger data, economists warned that the economic fallout from the Iran conflict could become more pronounced in the months ahead, particularly because of rising energy costs for Asian economies dependent on imported fuel.

“Japan’s economy approached the Iran war with solid momentum but we think that GDP growth will grind to a halt this quarter and next,” analysts at Capital Economics said.

“Looking ahead, the government’s decision to cap prices of petroleum products means that inflation will remain subdued for now. However, that’s unlikely to last as higher energy prices are lifting prices of imported products and will feed through to higher utility bills in due course.”