U.S. stock futures traded close to unchanged on Tuesday as investors monitored renewed Middle East tensions, higher oil prices and developments across the artificial intelligence sector ahead of key inflation data later this week.
By 03:05 ET (07:05 GMT), Dow futures were down 51 points, or 0.1%, while S&P 500 and Nasdaq 100 futures were broadly flat.
Wall Street’s major indices declined in the previous session as fading expectations for an agreement to reopen the Strait of Hormuz pushed oil prices higher. The move revived concerns that rising energy costs could fuel inflation and complicate the outlook for central bank monetary policy.
U.S. Treasury yields also edged higher, adding pressure to equities.
Nvidia AI infrastructure deal draws scrutiny
Nvidia (NASDAQ:NVDA) confirmed a major AI infrastructure agreement involving financial groups including Apollo, BlackRock, Goldman Sachs and KKR.
The initiative is intended to help Nvidia mobilise more than $500 billion of third-party capital to finance infrastructure required for artificial intelligence.
Nvidia shares fell more than 2% after the Financial Times initially reported the development.
Analysts at Vital Knowledge described the announcement as another example of Nvidia “extending its balance sheet to drive AI infrastructure demand.”
Concerns over the sustainability of heavy investment in artificial intelligence have weighed on sentiment in recent weeks, partly offsetting optimism generated by a generally strong quarterly earnings season among S&P 500 companies.
Trump rejects Iran’s demand for reparations
Prospects for an immediate peace agreement between the United States and Iran have also weakened after President Donald Trump dismissed a new series of Iranian demands issued over the weekend.
One of Tehran’s demands called for Washington to pay reparations for damage resulting from the conflict, which has lasted for more than five months.
Trump said the request had not previously been raised by Iranian negotiators and argued that Tehran should instead provide compensation “for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts.”
The continuing dispute has left the Strait of Hormuz effectively closed, restricting global energy supplies. Before the conflict began in late February, roughly one-fifth of the world’s oil and liquefied natural gas passed through the waterway.
Oil prices have remained highly sensitive to developments in the negotiations. Brent crude futures were up 1.8% at $89.34 a barrel.
Riot Platforms jumps on reported $9.1 billion Anthropic deal
Riot Platforms (NASDAQ:RIOT) shares surged more than 20% in extended trading following reports identifying Anthropic as the customer behind a major data centre agreement announced by Riot.
Bloomberg reported that Anthropic signed a $9.1 billion long-term agreement with Riot to secure computing capacity as the AI developer expands infrastructure supporting demand for its Claude products.
The agreement covers 191 megawatts of computing capacity at Riot’s Rockdale, Texas campus and runs through June 2048.
Riot expects the contract to generate $9.1 billion in revenue. Two additional five-year extension options could increase total sales under the arrangement to as much as $16.1 billion.
Intel raises $20 billion through expanded share offering
Intel Corporation (NASDAQ:INTC) raised $20 billion from an upsized stock offering as the semiconductor company seeks additional capital to support its manufacturing expansion.
The offering was priced at $95 per share, representing a 2.6% discount to Intel’s previous closing price.
Intel sold 210.5 million common shares and granted underwriters a 30-day option to purchase as many as another 31.6 million shares.
The company had initially planned to raise $15 billion but increased the size of the offering. Intel said the proceeds would be used for general corporate purposes.
Intel shares fell more than 4% on Monday. The stock has risen strongly this year as the company prepares to invest heavily in manufacturing facilities and advanced packaging technology as it competes with contract chipmakers including TSMC.
Reserve Bank of Australia keeps rates at 4.35%
The Reserve Bank of Australia left its benchmark interest rate unchanged at 4.35% on Tuesday, in line with market expectations following signs that inflation had begun to cool.
The decision was unanimous. The RBA has increased rates by a cumulative 75 basis points this year.
Expectations for a pause strengthened after Australian consumer price inflation came in below forecasts during the second quarter, while policymakers also reduced their inflation projections for the end of 2026.
However, the central bank cautioned that both headline and core inflation remained elevated and could stay high in the near term.
Higher fuel prices resulting from the Iran conflict were identified as an important source of near-term inflationary pressure, leaving the possibility of further interest-rate increases in play.