Dow Jones futures fall as renewed US-Iran tensions sparked risk aversion and dampened hopes for a regional ceasefire.
Trump expressed increasing frustration regarding the current progress of negotiations to resolve Middle East conflict.
AI-driven chipmaker optimism propelled the S&P 500 and Nasdaq 100 to fresh record highs on Monday.
Dow Jones futures are steady around 49,800 during the European hours on Tuesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 decline 0.35% to near 7,410, and the Nasdaq 100 futures inch lower 0.77% toward 29,200. Traders are closely watching April’s consumer inflation report due on Tuesday for insight into how the war with Iran is impacting the economy and influencing Federal Reserve (Fed) policy.
US stock futures slip on increased risk aversion amid renewing United States (US)-Iran tensions. CNN reported on Monday that US President Donald Trump has expressed growing frustration over the current state of negotiations to end regional hostilities. Aides suggest that the administration is now more seriously considering a resumption of military action than in previous weeks.
Moreover, Iranian Parliament speaker Mohammad Bagher Ghalibaf warned via Reuters that Iran’s military remains fully prepared to retaliate against any future strikes, putting the region’s fragile ceasefire under immense strain. Traders await further updates on reports stating Trump’s high-stakes meeting with Chinese President Xi Jinping this week, which is expected to center on trade, artificial intelligence, and global energy security.
Wall Street closed at gains on Monday, driven by gains in energy, materials, and industrial sectors. While the Dow Jones added 0.19%, the S&P 500 and Nasdaq 100 also advanced 0.19% and 0.1%, respectively, to record highs. These gains were propelled by a rally in chipmaker stocks, fueled by sustained optimism regarding AI-driven demand.
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