S&P 500 futures dropped 0.5% and Nasdaq futures fell 1.1% as tech shares led broad declines, extending Monday's retreat. Bond yields climbed to fresh highs and US-Iran tensions stayed heated, while chipmakers and memory names again took a knock.
US equity futures extended Monday's slide, with S&P 500 futures down 0.5% and Nasdaq futures down 1.1%, as tech shares led the drop. The pullback comes as a distraction from key earnings due from major retailers this week.
Bond yields climb to fresh highs
Equities also came under pressure as bond yields moved higher. 10-year US Treasury yields climbed to 4.74%, while 30-year yields rose to 5.33%, a fresh high since 2007. Investors continue to weigh the inflation outlook alongside developments in the Middle East.
US-Iran tensions remain elevated. Trump threatened to bomb Oman, According to InvestingLive: "getting in the way" of a deal. That is keeping investors on edge and stifling the mood in equities.
Chipmakers lead the retreat
Memory and chipmakers are again taking a knock. Sandisk dropped 5.7%, while Western Digital fell 5.2% and Seagate slid 4.5%. Micron, Applied Materials and Intel also declined, alongside smaller drops for AMD, Nvidia and Tesla. Meta, Amazon and Alphabet edged lower, while Microsoft and Apple bucked the trend with modest gains.
The moves echo a narrative that has weighed on the AI trade for a while: concern over bloating capital expenditure. Tech firms managed to pass that test at the balance during Q2 earnings, but the issue is not going away any time soon. For now, it looks like a minor retreat after the surging run higher in early August.
Source: InvestingLive
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