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Tech Stock Sell-Off, Continued Middle East Standoff Drag US Equity Futures Pre-Bell

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US equity futures were edging lower pre-bell Tuesday as technology stocks suffered losses and the Middle East impasse continued with no end in sight.

Dow Jones Industrial Average futures were 0.3% lower, S&P 500 futures were down 0.5%, and Nasdaq futures were 0.9% lower.

Sell-offs in technology stocks weighed on the broader market. Nvidia (NVDA), slated to report after-bell Wednesday, saw its stock drop 0.8%.

President Donald Trump said in a post on Truth Social that he called off a scheduled attack on Iran for Wednesday due to requests from Qatari Emir Tamim bin Hamad Al Thani, Saudi Crown Prince Mohammed bin Salman, and UAE President Mohammed bin Zayed Al Nahyan. The leaders said that "serious negotiations" are underway and a potential deal could be made, according to Trump.

Traders noted the latest round of earnings, with Home Depot (HD) posting lower fiscal Q1 adjusted earnings amid higher revenue.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.6% at $110.27 per barrel and US West Texas Intermediate crude 1% lower at $103.32 per barrel.

Pending home sales for April, scheduled for release at 10 am ET, are expected to be up 1% after a gain of 1.5% in the prior month, according to estimates compiled by Bloomberg.

Federal Reserve Philadelphia President Anna Paulson, acting Atlanta President Cheryl Venable and Governor Christopher Waller speak on Tuesday.

In other world markets, Japan's Nikkei closed 0.4% lower, Hong Kong's Hang Seng ended 0.5% higher, and China's Shanghai Composite finished 0.9% higher. Meanwhile, the UK's FTSE 100 was up 0.6%, and Germany's DAX index was 1.3% higher in Europe's early afternoon session.

In equities, joining Nvidia in the technology stock sell-off were chip firms Taiwan Semiconductor (TSM), Broadcom (AVGO), and Micron Technology (MU). Taiwan Semiconductor stock was down 1.5%, Broadcom shares fell 1.4%, and Micron Technology stock was down 1.9%,

On the winning side, Sony (SONY) shares were up 2% after the company said in a post on X that it will raise PlayStation Plus subscription prices for new customers in select regions starting Wednesday, citing market conditions. Equinor (EQNR) stock was up 2.3% after the company said it will supply Eneco with natural gas from Norway's continental shelf for a five-year period. Workday (WDAY) shares were up 2.6% following a Reuters report citing the company's India President Sunil Jose as saying Workday intends to sustain its rapid hiring rate in India while increasing artificial intelligence investments and opening additional offices.

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Tadawul Shares Bounce Bank Amid Renewed US-Iran Peace Deal Hopes

Saudi Arabian equities rose on Tuesday, with the Tadawul All Share Index closing 0.24% higher, as the renewed hopes regarding possible peace talks between the US and Iran boosted investor sentiment.Iran sent a new peace proposal to the US, which included the end of the Middle Eastern conflict, the withdrawal of US troops, and reparations. The move prompted a pause in a US plan to resume military action in the Middle Eastern country."In the US-Iran war, Tehran has submitted a new response to the latest US proposal via Pakistan, though mediators warn the ceasefire is 'on life support'. Brent Crude slipped around 2% to USD109.8/bbl in early Asian trading after President Trump said he had paused a planned large‑scale strike on Iran to allow time for negotiations aimed at ending the war in the Middle East. Yet Trump insists the US remains ready to act if talks fail," Danske Bank said in a note.Further to this, Pakistan reportedly sent over troops and air defense systems to Saudi Arabia as part of its mutual defense pact. The deployment was made to support the kingdom's defense in case of a wider conflict.On the corporate front, Alinma Bank (SASE:1150) shares edged up 0.13% as it disclosed its plans to issue US dollar-denominated sustainable additional tier 1 capital certificates via a special purpose vehicle to investors.Meanwhile, the bourse is set to expand as Dar Albalad for Business Solutions will debut on the bourse's main market under the 7205 ticker on Wednesday. Additionally, the IT services company's subscribed securities were added to the eligible security holder accounts.

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Asia Markets

Emirati Equities Rebound as US Postpones Planned Attack on Iran

Stocks in the United Arab Emirates were back in the green on Tuesday as hopes of renewed negotiations between the US and Iran boosted market sentiment, leading to a decline in oil prices.At the close of trading, the FTSE ADX General Index gained 0.913%, while the DFM General Index added 0.933%.US President Donald Trump said that he held off a planned military attack on Iran scheduled for Tuesday at the request of Qatar, Saudi Arabia, and the UAE. Trump also added that "serious negotiations" are taking place and a potential deal acceptable to the US might be reached.According to reports from various media outlets, Iran submitted a new response to the latest US proposal through Pakistan. The proposal entails the withdrawal of US troops from close areas, compensation for war damages, lifting of all sanctions, and release of frozen funds."The oil market continues to trade in wide ranges, and it remains extremely sensitive to Iran-related headlines amid current supply disruptions," ING said. "One might think the oil market would become increasingly numb to these headlines. However, the scale of supply disruptions is significant and growing more concerning each day that oil flows remain halted."Back home, Abu Dhabi Securities Exchange integrated its derivatives offerings and market data onto the Bloomberg Terminal, enabling institutional investors to explore and access opportunities within UAE-listed companies.On the corporate side, Abu Dhabi National Oil Co. For Distribution (ADX:ADNOCDIST), d/b/a Adnoc Distribution, teamed up with Americana Restaurants International (ADX:AMR) to integrate up to 200 quick service restaurants in its network. Shares of Adnoc Distribution closed 0.26% higher, while those of Americana Restaurants surged 6.25%.United Securities downgraded its rating on Dubai Taxi Co (DFM:DTC) to hold from buy and cut its price target to 2.15 Emirati dirhams per share, after its profit and revenue came to be lower than the investment management firm's estimates. The taxi company's stocks closed the session flat.

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Asia Markets

US Equity Indexes Off Session Lows as Trump Postpones Iran Attack

US equity indexes closed mixed, albeit off session lows, as President Donald Trump agreed to delay a "large-scale" attack on Iran on Tuesday at the request of leaders from the Middle East negotiating with Tehran.The Nasdaq Composite fell 0.5% to 26,090.73, with the S&P 500 down less than 0.1% to 7,403.05 on Monday. The Dow Jones Industrial Average rose 0.3% to 49,686.12. Technology and industrials led decliners at the close. Energy, financials, and consumer staples were among the top gainers.President Trump will "hold off" on a Tuesday plan to attack Iran, citing a request from Qatar, Saudi Arabia, and the United Arab Emirates as he said negotiations to end the war grow more "serious," CNN reported Monday. "This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN," Trump was cited as saying.Trump also instructed his leadership "to be prepared to go forward with a full, large-scale assault of Iran, on a moment's notice" if a deal isn't reached, according to the president's Truth Social post.Meanwhile, Iran offered an updated peace proposal, which the White House adjudged lacking meaningful improvement over the previous offer, rendering the latest version insufficient to reach a deal to end the war, a senior US official and a source briefed on the issue told Axios.Separately, the US has agreed to release a quarter of Iran's frozen funds - totaling tens of billions of dollars - held in foreign banks, a senior Iranian source told Reuters. Washington has shown more flexibility in allowing Iran to continue some peaceful nuclear activity under the supervision of the International Atomic Energy Agency, the source told the news agency.West Texas Intermediate crude oil futures climbed 1% to $106.48, and Brent crude futures fell 0.4% to $108.83.US Treasury yields slipped after trading mixed earlier in the session. The 10-year was little changed at 4.59%, the highest in about a year. The 30-year rate was steady at 5.13%, the strongest level since 2007.In precious metals, gold futures rose 0.2% to $4,568.8, and silver futures climbed 0.5% to $77.97, clawing back all declines from earlier in the session.In economic news, the National Association of Home Builders' monthly housing market index rose to a reading of 37 in May from 34 in April, compared with expectations for a 34 print in a survey compiled by Bloomberg. The index was above the 34 print reported a year earlier.The New York Federal Reserve's services index improved to minus 5.8 in May from minus 14.0 in April, the highest level since January 2025. The index is the first services sector reading for May and suggests a slower contraction.In company news, NextEra Energy (NEE) and Dominion Energy (D) agreed to merge in an all-stock deal to create the world's largest regulated electric utility. Shares of Dominion jumped 9.4%, the second-biggest gainer on the S&P 500.Regeneron Pharmaceuticals' (REGN) miss on the fianlimab trial may lead some investors to question the company's broader strategy and execution, RBC Capital Markets said. Regeneron's shares sank 9.8%, the steepest decline on the S&P 500 and the Nasdaq.

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