US stock futures were little changed on Tuesday as a fresh surge in oil prices revived inflation concerns, offsetting optimism from a strong earnings season. Dow Jones Industrial Average futures slipped 0.1%, while S&P 500 and Nasdaq 100 contracts were flat to slightly higher.
The cautious tone followed another escalation in the US-Iran standoff, which pushed Brent crude toward $90 a barrel. The rise in energy prices comes just a day before the July Consumer Price Index (CPI) release, adding to the uncertainty surrounding the Federal Reserve's next policy move.
Oil's return to center stage
Brent crude climbed more than 2% on Tuesday after surging in the previous session as hopes for a quick reopening of the Strait of Hormuz faded. US crude also moved above $83 a barrel. The latest escalation followed President Donald Trump's response to Iranian demands for compensation, which added another obstacle to negotiations over the strategic waterway.
Higher crude is beginning to affect markets beyond energy, with Treasury yields responding as traders reassess the inflation outlook. The move has reignited fears that price pressures could persist, complicating the Fed's path.
CPI data could set the tone
The Bureau of Labor Statistics will release July CPI at 8:30 am ET on Wednesday. June inflation slowed to 3.5% year over year, but markets are now watching whether energy costs and other price pressures begin to reappear. The Fed, led by Chair Kevin Warsh, has reduced its reliance on forward guidance, making incoming economic data more important for policy expectations. Futures pricing is now close to evenly divided between another September increase and no change.
Nvidia steadies after Monday's pullback
Nvidia edged higher before the bell after declining in Monday's session, keeping the chipmaker at the center of the debate over whether extraordinary AI infrastructure spending can continue supporting technology valuations. That debate is widening beyond semiconductor sales. Investors are increasingly examining how data-center construction is being financed, how quickly cloud revenue is growing, and whether cash generation can keep pace with capital expenditure.
Intel and Riot show two ways to fund AI build-out
Intel fell before the bell after pricing an upsized $20 billion share offering at $95 each. The company is selling about 210.5 million shares, with underwriters receiving an option for additional stock. The transaction was increased from an originally planned $15 billion offering. Riot Platforms moved in the opposite direction, jumping more than 20% after reports that Anthropic had agreed to a 20-year cloud-computing contract worth about $9.1 billion.
Rocket Lab and Hims add single-stock volatility
Rocket Lab dropped more than 8% after reporting record second-quarter revenue of $234 million, up 62% from a year earlier, but delivering a wider-than-expected per-share loss. Management said Neutron remained on course for a fourth-quarter launch-pad rollout, although the probability of a debut flight before year-end had narrowed. Hims & Hers fell after reporting an $86.3 million second-quarter net loss, compared with a $42.5 million profit a year earlier, even as revenue rose 38% to $753.2 million.
With most S&P 500 companies already through earnings season, attention is shifting from whether profits were strong to whether inflation, oil, and interest rates will enable those earnings to support elevated valuations. The market's resilience will be tested in the coming sessions as investors parse the latest data and geopolitical developments.
This article is for informational purposes only and does not constitute financial advice.
