TLDR
- US stock futures fell Tuesday with Nasdaq 100 futures down over 1% as US-Iran tensions escalated
- President Trump threatened to bomb Oman over the Strait of Hormuz, sending oil prices surging
- Brent crude hit $91 per barrel and WTI rose to around $85, the highest in over two weeks
- The 30-year Treasury yield climbed to 5.33%, near a 19-year high
- Chip and memory stocks led pre-market losses, with Sandisk, Western Digital, and Seagate all falling
US stock futures pointed lower Tuesday morning as rising tensions between the US and Iran pushed oil prices higher and bond yields continued their climb.
Nasdaq 100 futures dropped around 1.1%. S&P 500 futures fell 0.4% to 0.6%. Dow Jones futures slid roughly 22 to 58 points, hovering near flat.
The losses followed a rough Monday session, when all three major indexes closed in the red after President Donald Trump threatened military action against Oman if it interfered with US efforts near the Strait of Hormuz.
Oil Prices and Bond Yields Rise
Trump said he intends to inflict more economic pain on Iran and would consider bombing Oman if it blocked access to the Strait. That sent oil prices sharply higher early Tuesday.
Brent crude futures rose to $91 per barrel. West Texas Intermediate futures climbed to around $85 per barrel, up about 1% on the day. Both benchmarks hit their highest levels in more than two weeks.
The US Strategic Petroleum Reserve fell to its lowest level since 1982, adding further pressure to oil markets.
Bond yields also rose. The 10-year Treasury yield hit 4.72%. The 30-year yield climbed to 5.31% to 5.33%, near its highest level in about 19 years.
Deutsche Bank macro strategist Henry Allen said investors grew pessimistic that the Strait of Hormuz would reopen any time soon, putting pressure on longer-dated sovereign bonds.
Chip Stocks Pull Back
Semiconductor and memory stocks, which had helped cushion losses on Monday, were among the hardest hit in premarket trading Tuesday.
Sandisk, Coherent, Western Digital, and Seagate were all among the worst performers in the S&P 500 premarket session.
Investors had piled into chip names in recent weeks, but those gains were showing strain under the weight of rising yields and geopolitical uncertainty.
On a brighter note, Home Depot shares rose about 1% before the bell after the company reported improved second quarter sales. Customers leaned toward smaller home projects over the summer, which helped lift results.
Toll Brothers and Klarna are among the companies set to report earnings later in the day.
Bond yields have been rising globally, driven by a combination of elevated oil prices, an AI-related borrowing spree, and concerns about government debt levels.
Markets remain on edge as US-Iran talks show little sign of progress, keeping pressure on equities, oil, and bonds heading into Tuesday’s open.
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