U.S. stock futures dip as Nvidia earnings and Iran tensions weigh on sentiment

S&P 500 Futures fell 0.4% to 7,399.50 points, while Nasdaq 100 Futures slipped 0.6% to 28,936.75 points by 02:10 ET (06:10 GMT). Dow Jones Futures traded 0.3% lower at 49,638.0 points.

Tech sector under pressure ahead of Nvidia earnings

In Monday’s regular session, the NASDAQ Composite closed down 0.5%, while the S&P 500 declined 0.1%. The Dow Jones Industrial Average was little changed, supported by gains in energy stocks.

Semiconductor and high-growth technology stocks came under renewed pressure as investors rotated away from risk assets amid climbing oil prices and geopolitical uncertainty in the Middle East. Nvidia (NASDAQ:NVDA) shares fell about 1.3% on Monday, extending recent losses ahead of its quarterly earnings release scheduled for Wednesday.

Market participants are focused on Nvidia’s results and guidance, which are seen as a key indicator of whether investor enthusiasm for artificial intelligence can continue to support elevated valuations across the technology sector.

Geopolitical tensions, oil prices, and rate outlook

U.S. President Donald Trump said on Monday that he paused a planned military strike on Iran after Tehran sent a peace proposal to Washington. According to his statement, the leaders of Qatar, Saudi Arabia, and the United Arab Emirates requested that he hold off on the attack. Trump added that there was now a “very good chance” of reaching a deal to limit Iran’s nuclear program.

Oil prices slipped modestly in Asian trading on Tuesday but remained elevated amid the continued closure of the Strait of Hormuz, a key channel for global energy supplies. The increase in oil prices has pushed U.S. Treasury yields higher, as investors weighed the possibility that persistently high energy costs could complicate the Federal Reserve’s interest rate outlook and increase the chances of a rate hike.

FAQ

Why are U.S. stock futures lower today?
U.S. stock futures are lower due to a technology-led selloff on Wall Street, ongoing geopolitical tensions involving Iran, elevated oil prices, and investor caution ahead of Nvidia’s quarterly earnings.

How did major U.S. indexes perform in the last session?
The NASDAQ Composite fell 0.5%, the S&P 500 slipped 0.1%, and the Dow Jones Industrial Average was little changed, supported by gains in energy stocks.

Why are Nvidia’s earnings considered important for the market?
Nvidia’s results and outlook are viewed as a key test of whether strong investor interest in artificial intelligence can continue to justify high valuations across the technology sector.

How are oil prices affecting expectations for U.S. interest rates?
Elevated oil prices have pushed Treasury yields higher and raised concerns that sustained energy costs could complicate the Federal Reserve’s rate outlook, potentially increasing the likelihood of a rate hike.