US equity futures traded without a clear direction on Tuesday as investors prepared for a pivotal week of corporate earnings, while attention also turned to the Federal Reserve’s policy meeting and ongoing geopolitical developments in the Middle East.
By 07:43 GMT, Dow Jones futures were up 41 points, or 0.1%, while S&P 500 futures slipped 0.3%. Nasdaq 100 futures underperformed, falling 0.9% as technology stocks remained under pressure.
Wall Street ended Monday’s session with mixed performances. Lower oil prices and declining US Treasury yields, supported by a pause in hostilities between the United States and Iran, helped improve market sentiment. However, investors continued to weigh the inflation risks associated with energy markets and the possibility that the Federal Reserve could maintain a restrictive monetary policy for longer.
Technology shares remained a focal point, with questions growing over whether the enormous investment being directed into artificial intelligence infrastructure can continue to generate sufficient returns. Those concerns are expected to be tested over the coming days as several of the sector’s largest companies publish quarterly results.
Nvidia (NASDAQ:NVDA) shares moved lower following reports that the company could provide financial backing worth approximately $250 billion for a major OpenAI data centre project. At the same time, the launch of new products by Chinese memory chip manufacturer CXMT and reports that Apple (NASDAQ:AAPL) has urged the Trump administration to permit the use of Chinese-made chips in certain products added to competitive pressures across the semiconductor industry.
The Philadelphia Semiconductor Index fell 2.2%, with the Wall Street Journal reporting that every constituent of the index closed below its respective 50-day moving average for the first time since April 2025.
Major Earnings Take Centre Stage
Investors are preparing for one of the busiest weeks of the earnings season.
Before Tuesday’s opening bell, Coca-Cola Company (NYSE:KO) and Boeing (NYSE:BA) are scheduled to publish their latest quarterly results. Markets will assess how geopolitical uncertainty has affected consumer demand at Coca-Cola, while Boeing’s update is expected to provide further evidence of progress in its operational recovery.
After the close of trading, attention will shift to Visa (NYSE:V), whose results could provide valuable insight into consumer spending trends during a period of heightened economic uncertainty.
Seagate Technology (NASDAQ:STX) will also be closely watched, with investors looking for further indications of demand linked to artificial intelligence infrastructure.
The week’s biggest announcements will come from Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). These technology giants continue to invest billions of dollars in data centres and semiconductor infrastructure that support the rapid expansion of artificial intelligence.
Federal Reserve Meeting Begins
Alongside corporate earnings, financial markets are closely monitoring the Federal Reserve’s latest policy meeting, which begins on Tuesday and concludes with an interest rate decision on Wednesday.
Policymakers continue to face a challenging environment. Although June inflation data came in below expectations, volatility in energy markets linked to the conflict in the Middle East has kept concerns about future price pressures alive. At the same time, the US labour market has remained relatively stable despite slower hiring activity.
According to CME FedWatch data, markets currently assign roughly a two-thirds probability that the Federal Reserve will leave interest rates unchanged at 3.5% to 3.75%, while a one-in-three chance remains for a 25-basis-point increase.
Trump and Netanyahu to Hold White House Talks
US President Donald Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu at the White House on Wednesday as diplomatic efforts continue alongside the conflict involving Iran.
Although direct exchanges of attacks between the United States and Iran have paused in recent days, uncertainty remains over whether a longer-term ceasefire can be achieved.
Trump said negotiations with Tehran were progressing, describing them as “good talks,” while indicating that military action could resume if discussions fail to produce an agreement.
Asian Technology Shares Retreat
Asian markets also reflected investor caution, particularly in the semiconductor sector.
South Korea’s KOSPI index suffered a sharp decline as technology shares came under heavy selling pressure amid concerns surrounding AI-related valuations and continued investment spending.
Additional pressure came after the United States announced a new 12.5% tariff on South Korean imports alongside measures affecting several other countries.
Major semiconductor manufacturers SK Hynix Inc (NASDAQ:SKHY) and Samsung Electronics Co Ltd (USOTC:SSNHZ) recorded double-digit declines, reflecting weaker sentiment across the global chip sector.