S&P 500 futures declined early Tuesday, primarily driven by the semiconductor sector, following a weak start to the week for major averages. Ongoing tensions between the U.S. and Iran, coupled with inflation concerns, contributed to rising Treasury yields. Contracts linked to the broad market index declined by 0.5%, whereas futures for the Nasdaq-100 experienced a decrease of 1.1%.Futures for the Dow Jones Industrial Average increased by 11 points, bolstered by a 1% rise in Home Depot shares following the company’s second-quarter earnings surpassing expectations. Western Digital declined over 6%, driving Nasdaq futures downward. Sandisk experienced a decline of approximately 6%.
Marvell and Seagate experienced declines exceeding 5%. Tuesday’s movements come on the heels of a decline in stock values, coinciding with an increase in oil prices amid uncertainty surrounding the expiration of a U.S.-Iran ceasefire on Monday. Negotiations between the countries have reached an impasse, with President Donald Trump stating he would take military action against Oman “if it gets in the way.” The increase in oil prices heightened concerns regarding inflation, leading to an uptick in longer-dated Treasury yields.
The 30-year Treasury bond yield reached a peak not seen since June 2007. Yields experienced an uptick once more on Tuesday, whereas oil prices remained relatively stable. Sonali Basak maintains that there remains potential for growth in the stock market, particularly as the rally extends beyond the major technology firms. “You look around and there’s still more room to run,” Basak told. “Even in the last month, the S&P Equal Weight still did not outperform the Nasdaq or the SOXX — which tells me it’s still been relatively left behind, even in recent days.” Across the Atlantic, European markets experienced a decline in morning trade. The pan-European Stoxx 600 experienced a decline of 0.51%.
The French CAC 40 experienced a decline of 0.55%, while Italy’s FTSE MIB decreased by 0.59%. Germany’s DAX also saw a reduction, shedding 0.38%. In London, the FTSE 100 experienced a decline of less than 0.1%. Markets in the Asia-Pacific region concluded the trading session with losses. South Korea’s Kospi experienced a decline of 1.55%. Japan’s Nikkei 225 experienced a decline of 2.54%. Australia’s benchmark index closed flat. Mainland China’s CSI 300 experienced a decline of 0.32%, whereas Hong Kong’s Hang Seng Index remained relatively stable.
