(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)
US equity futures were edging lower pre-bell Tuesday as prospects for a peace agreement in the Middle East dimmed with the US not seeking to extend the ceasefire agreement with Iran that expired Monday.
Dow Jones Industrial Average futures were 0.1% lower, S&P 500 futures were down 0.5%, and Nasdaq futures were 1.3% lower.
Iran would shift to a "fully offensive" military posture to break the US naval blockade if diplomatic efforts to end the war fail, Reuters reported Tuesday, citing a senior Iranian official. Asked by reporters if the US was seeking to extend the ceasefire, President Donald Trump said no, according to Reuters.
Traders digested the latest round of earnings, with Home Depot (HD) reporting higher fiscal Q2 adjusted earnings and net sales.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.3% at $91.10 per barrel and US West Texas Intermediate crude 0.% higher at $84.29 per barrel.
July housing starts dropped to a 1.239 million annual rate from 1.415 million in the previous month, compared with expectations for a 1.345 million rate in a survey compiled by Bloomberg. US import prices fell 0.4% in July, compared with the 0.1% gain expected and the prior 0.3% decrease in June. US export prices fell 1.3% in July, compared with expectations for no change and the 0.7% decrease in the prior month.
The July industrial production report, due at 9:15 am ET, is forecast to show a 0.3% gain following a 0.1% increase in the prior month. Pending home sales for July, slated for 10 a.m. ET, are expected to hold steady after a drop of 5.4% in the prior month.
In other world markets, Japan's Nikkei closed 2.5% lower, Hong Kong's Hang Seng ended 0.1% higher, and China's Shanghai Composite finished 0.2% higher. Meanwhile, the UK's FTSE 100 was up 0.1%, and Germany's DAX index was 0.3% lower in Europe's early afternoon session.
In equities, stocks of Nvidia (NVDA), Micron Technology (MU), and AMD (AMD) were all down as part of a wider downswing in the technology sector. Nvidia shares dropped 2%, Micron stock fell 4.8%, and AMD shares were 3.5% lower.
On the winning side, Home Depot stock was 2.1% higher after the company posted better-than-expected fiscal Q2 adjusted earnings and net sales. Alibaba Group (BABA) shares rose 3% after Alipay said Monday it launched a full-stack agentic AI commerce platform for merchants. Targa Resources (TRGP) stock was up 3.6% after the company said late Monday it struck new 20-year fee-based, midstream agreements to support ExxonMobil's (XOM) development of its Permian Basin acreage.