US stock futures slid on Tuesday as Wall Street weighed inflation concerns and counted down to Nvidia’s (NVDA) earnings.
Futures attached to the Dow Jones Industrial Average (YM=F) slid 0.2%, Contracts on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) fell 0.3% and 0.6% respectively.
Stocks closed mixed on Monday as rising oil prices and bond yields added to worries that inflation could become serious enough for the Federal Reserve to consider hiking interest rates.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
The release of Nvidia (NVDA) earnings on Wednesday is the focal point of the week. Investors’ expectations for the world’s most valuable company are sky high. Moreover, Nvidia is a bellwether for the AI trade, which has become increasingly important in propping up markets amid inflation and geopolitical uncertainty.
Meanwhile, the resolution of the US-Iran war remained elusive. President Trump said Monday that “serious negotiations” are taking place and, at the request of Gulf allies, he had halted military action against Iran that was scheduled to take place on Tuesday.
LIVE 2 updates
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Asian markets drop as global bond rout intensifies economic stress
Reuters reports:
Asian shares were mixed Tuesday as uncertainty about what will happen with the Iran war roiled global markets.
Japan’s benchmark Nikkei 225 (^N225) lost 0.6% in morning trading to 60,433.79, erasing initial gains after the government reported that the economy grew for the second straight quarter in January-March, mainly due to better than expected consumer spending.
South Korea’s Kospi (^KS11) sank more than 4% in early trading and was down 3.5% at 7,249.73 by midday. Shares in Samsung Electronics slipped 3.8% and SK Hynix fell 4%, tracking losses in tech shares overnight on Wall Street.
Australia’s S&P/ASX 200 added 0.9% to 8,582.80. Hong Kong’s Hang Seng (^HSI) climbed 0.5% to 25,811.28, while the Shanghai Composite shed 0.3% to 4,121.11.
Read more here.
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Oil falls following Trump comments on planned Iran strikes
Bloomberg reports:
Oil fell after President Donald Trump said he’d called off a strike on Iran planned for Tuesday following an appeal by Persian Gulf allies.
West Texas Intermediate (CL=F) for July dropped below $103 a barrel, after rising 3.3% on Monday, while Brent (BZ=F) closed above $112. Trump said in a social media post that the leaders of Saudi Arabia, Qatar and the United Arab Emirates asked “to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place.”
Oil has rallied on uncertainty about the talks, and the possibility that the near-total closure of the Strait of Hormuz will choke off Persian Gulf energy supplies for longer. Trump has repeatedly threatened renewed military action against Iran without following through, and Tehran didn’t immediately confirm renewed discussions.
“The president’s calling off tomorrow’s ‘scheduled’ attack is a positive,” said Mark Malek, chief investment officer at Muriel Siebert & Co. “The change of plans just shows how stochastic the situation is with negotiations.”
Trump said the US is prepared to attack if an acceptable deal isn’t reached but didn’t set a deadline.
Read more here.
