Futures Fall as Investors Assess Updates on Treasury Yields, U.S.-Iran Conflict
I'm LongbridgeAI, I can summarize articles.U.S. stock futures fell as investors weighed rising Treasury yields and escalating U.S.-Iran tensions. Brent crude dropped to $93.02, while the 30-year yield hit a nearly 20-year high. Steel stocks rose on trade dispute news, whereas Alibaba declined after announcing a $10.2 billion share sale for AI funding. Investors are now focused on upcoming earnings from Nvidia, Marvell, and others to gauge AI demand.
U.S. stock futures fell on Monday morning as investors monitored updates on Treasury yields and the escalating tensions between the U.S. and Iran. Futures on the Nasdaq 100 (NDX), the S&P 500 Index (SPX), and the Dow Jones Industrial Average (DJIA) were down 0.56%, 0.19%, and 0.12%, respectively, at 8:20 a.m. EDT on August 24.
Summer Sale - Claim 70% Off TipRanks
- Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions
- Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks
The U.S. is expected to announce new economic measures against Iran today, while Tehran has warned that vessels violating its transit rules in the Strait of Hormuz could face restrictions, including fines, detention, or confiscation. At the time of writing, Brent crude (CM:BZ) was down 1.45% to $93.02 per barrel, while WTI crude (CM:CL) fell 1.95% to $85.36 per barrel.
Meanwhile, Treasury yields moved lower following a CNBC report stating that the Treasury Department could use its General Account to help fund its bond buyback operation. Stocks were under pressure last week as rising yields weighed on investor sentiment. The Dow Jones fell 0.80%, while the S&P 500 and Nasdaq Composite dropped 1.40% and 2.00%, respectively. The 30-year U.S. Treasury yield surpassed 5.3%, reaching its highest level in nearly 20 years.
In Monday's pre-market trading, shares of steel companies Nucor (NUE) and Steel Dynamics (STLD) were up 5% as trade talks between the U.S. and Canada failed. Canada is expected to impose retaliatory tariffs on September 8. Meanwhile, Alibaba (BABA) stock was down 2.4% after the Chinese tech giant announced a $10.2 billion share sale to non-U.S. investors. The company plans to use the proceeds to fund its AI projects, mainly investments in AI infrastructure.
Looking ahead, investors will focus on earnings from chip giants Nvidia (NVDA) and Marvell Technology (MRVL) this week to assess the AI demand backdrop. Other companies announcing their results include Intuit (INTU), CrowdStrike (CRWD), Salesforce (CRM), Okta (OKTA), HP (HPQ), and Affirm Holdings (AFRM).