US STOCKS-US stock futures fall as chips extend slide, inflation worries persist

Wall Street's rally was halted on Friday as a rout in ‌global bond markets evoked fears of major central banks adopting a tighter monetary policy as the Middle East conflict drives up oil prices, raising the specter ‌of elevated inflation. Brent crude futures dipped 1.5%, but were still above $110 after U.S. President Donald Trump said on social media on Monday that he had held off on a planned military strike against Iran scheduled for Tuesday while negotiations continued.

U.S. stock index futures slid on Tuesday, pressured ‌by ​declines in chip stocks and lingering inflation concerns despite a pause in the Treasury selloff and easing oil prices. Nvidia slipped 1% in premarket trading and was on track to drop for the third day in a row ‌as investors retreated from richly valued semiconductor stocks that have helped drive U.S. stocks to record highs this year.

Memory chip and data storage companies suffered losses after soaring in recent weeks. Micron Technology was down 1%, Seagate Technology fell 1.6%, while Western Digital dropped 2.3%. Wall Street's rally was halted on Friday as a rout in ‌global bond markets evoked fears of major central banks adopting a tighter monetary policy as the Middle East conflict drives up oil prices, raising the specter ‌of elevated inflation.

Brent crude futures dipped 1.5%, but were still above $110 after U.S. President Donald Trump said on social media on Monday that he had held off on a planned military strike against Iran scheduled for Tuesday while negotiations continued. Meanwhile, the benchmark 10-year Treasury yield eased to 4.587% after touching its highest level since February 2025 on Monday.

"Risk sentiment is mixed on Tuesday, as investors ⁠weigh up the ​costs of the war in the ⁠Middle East," said Kathleen Brooks, research director at XTB. "There is a sense of frustration that there has been no break in the impasse between the U.S. and Iran and no clear ⁠path to a deal to end the war."

At 05:49 a.m. ET, Dow E-minis fell 145 points, or 0.29%, S&P 500 E-minis shed 37 points, or 0.5%, and Nasdaq 100 E-minis ​lost 226 points, or 0.78%. The tech-heavy Nasdaq led losses on Wall Street on Monday, as rising yields pressured technology and other growth stocks. Higher ⁠yields tend to weigh on such companies because their valuations rely heavily on potential future profits.

Investors will also focus on Wednesday's release of minutes from the U.S. Federal Reserve's latest policy meeting ⁠for ​signs of how much support there was within the committee for moving to a neutral stance and away from an easing bias. Markets are pricing in about a 40% chance the central bank will raise interest rates by at least 25 basis points in January, according to CME's FedWatch tool.

Corporate earnings remain ⁠another key test for markets. Nvidia, the world's most valuable company, is due to report results on Wednesday, with investors looking for evidence that booming demand tied ⁠to artificial intelligence can justify elevated valuations ⁠across the sector. Walmart, the largest retailer globally, is also scheduled to report earnings this week. Its results could offer a clearer read on how consumers in the United States are coping with higher energy costs and broader inflation pressures.

Among ‌other premarket movers, cloud ‌firm Akamai Technologies fell 3.8% after announcing a $2.6 billion convertible bond offering.