US stock futures were mixed on Tuesday as Wall Street braced for a wave of major bank earnings and another leg down in semiconductor shares. Dow futures gained about 0.15%, S&P 500 futures were roughly flat, and Nasdaq 100 futures dropped 0.6%, or 180 points, reflecting persistent pressure on growth-oriented technology names.
The divergence underscores a market caught between two competing narratives: whether bank results can broaden the rally beyond tech, and whether Wednesday's consumer price index (CPI) will reignite the rate concerns that have pushed long-dated Treasury yields to multi-decade highs. A slight pullback in oil prices and a dip in yields offered some relief, but the tone remained cautious.
AI sell-off drags on Nasdaq futures
Semiconductors remained the clearest source of stress. Micron fell about 2.5% in premarket trading, Intel lost around 2%, and AMD was down roughly 1%, while Nvidia also slipped. The weakness followed a brutal Asian session after China's CXMT said it had made progress on a more advanced DRAM architecture. Samsung Electronics dropped 7.4% and SK Hynix tumbled 10% in Seoul.
Morgan Stanley analysts cautioned that the memory cycle remains vulnerable to new supply even with robust AI demand. The core question is whether today's exceptional chip margins can withstand intensifying competition.
Bank earnings test the rotation trade
JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo are all scheduled to report before the bell, with their shares trading higher premarket. FactSet expects S&P 500 earnings to rise 29.6% in the quarter. Gabelli's Macrae Sykes told MarketWatch that banks still enjoy a relatively healthy operating backdrop, supported by solid employment and household balance sheets.
Oil eases, but Middle East risk persists
Brent crude fell about 1.2% to roughly $105.30 a barrel as traders weighed potential increases in Russian diesel supply against ongoing Gulf attacks. ANZ analysts told The Wall Street Journal that part of Tuesday's decline may reflect a technical correction after recent gains. Cheaper oil helps inflation expectations, but Brent above $100 still leaves corporate margins exposed to another supply shock.
Treasury yields dip, CPI remains the key macro event
The 10-year Treasury yield fell about five basis points to 5.19% as bond trading resumed after Monday's holiday. Wednesday's CPI report is the key macro event, with core inflation expected to slow to 0.2% month over month. A softer print could extend the relief in yields, while an upside surprise would put renewed pressure on expensive growth shares.
UnitedHealth gives Dow a boost
UnitedHealth rose about 3% after posting adjusted earnings of $4.69 per share, above the $4.14 expected, and raising its 2026 adjusted EPS outlook to at least $20.50. Its medical-cost ratio improved to 88.4%, reinforcing the view that the insurer's margin recovery is gaining traction.
As the session unfolds, investors will parse bank results for signs of credit quality and loan demand, while keeping an eye on the CPI print that could set the tone for the remainder of the week.
This article is for informational purposes only and does not constitute financial advice.
