Stocks Set for Lower Open Amid AI Volatility, Iran Tensions
The stock market is expected to open lower on Tuesday as tech stocks pull back amid growing concerns over the Middle East situation and inflation fears. Futures tracking major indexes like the Nasdaq are down nearly 1%, while S&P 500 futures fall by about 0.4%. The U.S. and Iran passed a key deadline for ending their conflict, raising worries of prolonged instability that could impact global markets. AI-related stocks such as Sandisk (SNDK), Western Digital (WDC), Seagate (STX), and chipmakers like Nvidia (NVDA) are falling in premarket trading after recent gains. Investors remain cautious about the sustainability of AI sector financing, with concerns over a potential bubble forming. Meanwhile, Treasury yields have climbed to multi-year highs as inflation fears persist despite some cooling in June and July data. Home Depot (HD), however, reported strong second-quarter earnings that beat expectations, offering a positive note for retailers ahead of upcoming reports from Lowe's (LOW), Walmart (WMT), and Target (TGT). Oil prices are also rising slightly amid reports of an attack near the Strait of Hormuz.
Tickers: $AMD $BIDU $HD $INTC $LOW $MRVL $MU $NVDA $SNDK $STX $TGT $WDC $WMT
Topics: AI trade volatility Middle East tensions stock market tech stocks Treasury yields