TLDR
- US stock futures fell Tuesday, with the Nasdaq down 0.6% as inflation concerns weighed on sentiment
- Bitcoin steadied near $76,800 after four straight days of losses
- Oil prices above $100 a barrel are fueling fears of sticky inflation and higher interest rates
- US-Iran tensions remain unresolved despite Trump pausing planned military action
- Nvidia earnings on Wednesday are the week’s key market event
Investors started Tuesday on edge as inflation worries pushed US stock futures lower and kept Bitcoin under pressure. The week’s biggest event — Nvidia’s earnings — is still a day away, leaving markets in a holding pattern.
Stocks Under Pressure
Futures for the Dow Jones fell 0.2% on Tuesday morning. The S&P 500 and Nasdaq 100 dropped 0.3% and 0.6% respectively. Monday’s session closed mixed after rising oil prices and bond yields added to inflation concerns.
Oil is now trading above $100 a barrel. That sharp rise is linked to fears of supply disruptions from the Middle East conflict. Higher energy costs typically push inflation higher, which can lead central banks to keep interest rates elevated.
The 10-year US Treasury yield was hovering around 4.44% on Tuesday. That reflects investor concern that inflation could stay high for longer, making borrowing more expensive across the economy.
Nvidia’s earnings on Wednesday are the focal point for markets this week. The company is seen as a key indicator of the health of the AI trade, which has helped prop up markets in recent months.
Bitcoin Steadies After Four-Day Slide
Bitcoin was last trading at $76,818, down 0.1% on Tuesday. The world’s largest cryptocurrency had risen above $82,000 last week, supported by strong ETF inflows, before sliding through four straight losing sessions.
Analysts at IG said Bitcoin is trading in a complex environment. ETF inflows and institutional buying are supportive, but geopolitical tension and inflation fears are driving sharp price swings.
US-Iran tensions are a key factor. Trump said Monday that planned military strikes on Iran had been paused while diplomacy continues. But uncertainty over the Strait of Hormuz and global oil supply is keeping investors cautious.
The relationship between oil prices and crypto is becoming clearer. Higher oil means higher inflation, which means central banks may hold rates high, which reduces appetite for riskier assets like Bitcoin.
Altcoins Also Quiet
Most altcoins were rangebound on Tuesday. Ethereum edged up 0.4% to $2,125. XRP fell 0.7% to $1.38. Solana eased 0.4% and Cardano added 0.3%.
Dogecoin dropped 1.6%, the worst performer among major tokens on the day.
Asian equity markets were struggling for direction as bond markets globally stayed under pressure. The fear is that the Iran conflict could turn into a prolonged inflationary shock for the world economy.
Markets are now watching Wednesday closely. Nvidia’s results could shift sentiment fast, one way or the other.
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