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Update: US Equity Futures Mostly Flat Pre-Bell as US-Iran Stalemate Persists

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(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)

US equity futures were mostly flat pre-bell Tuesday as the US and Iran remained at a stalemate regarding negotiations to reopen the Strait of Hormuz.

Dow Jones Industrial Average futures were 0.1% higher, S&P 500 futures were up 0.2%, and Nasdaq futures were 0.3% higher.

In response to Iran's conditions for reopening the waterway, US President Donald Trump said Monday that the Middle Eastern nation should pay reparations of its own for damage done over the past 50 years. "If there's damages to be paid, I think Iran should pay those damages," multiple reports quoted Trump as saying.

Iranian Foreign Minister Abbas Araghchi had earlier said that reopening the strait would be partly conditional on the US paying for damage caused during the conflict between the two countries.

Traders took note of the latest round of earnings, with Sea (SE) posting higher Q2 earnings and revenue.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.2% at $87.93 per barrel and US West Texas Intermediate crude 0.4% higher at $82.48 per barrel.

The existing home sales report, scheduled for release at 10 am ET, is expected to show a decrease of 1% for July after a 2.4% fall in the prior month.

In other world markets, Hong Kong's Hang Seng ended 1.1% lower and China's Shanghai Composite finished 0.8% lower, while Japan's Nikkei was closed for a public holiday. Meanwhile, the UK's FTSE 100 was 0.1% higher, and Germany's DAX index was 0.2% higher in Europe's early afternoon session.

In equities, Sea stock was up more than 10% after the company reported its Q2 financial results. Nvidia (NVDA) shares rose 1.6% after the chipmaker said it partnered with six major financial institutions to raise more than $500 billion in third-party capital for the development of artificial intelligence infrastructure. SK Hynix (SKHY) stock was 2.1% higher after a Seoul Economic Daily report that the company plans to resume construction at its second NAND flash facility in Dalian, China, to boost local output by about 50%.

On the losing side, Rocket Lab's (RKLB) shares fell 3.7% after the company's Q2 loss narrowed less than analysts' consensus. Hims & Hers Health (HIMS) was down 6.9% after the company reported late Monday it swung to a Q2 loss.

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China Shares Open Lower as Hormuz Reopening Prospects Dim

Chinese shares opened lower on Tuesday amid dimming prospects for the reopening of the Strait of Hormuz.The Shanghai Composite Index, the main gauge of Chinese stocks, opened 0.4% lower to 3,950.71. The Shenzhen Component Index declined 0.4% to 14,266.44.Compensation disputes between Iran and the U.S. have dampened hopes for a deal to reopen the Strait of Hormuz.Iran demanded sanctions relief and other concessions from Washington, while U.S. President Donald Trump insisted that Tehran compensate all those killed and wounded in Iranian attacks.

Shanghai Composite^SZSE
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Update: US Equity Indexes Decline as Fading Hopes for Quick Hormuz Reopening Lift Crude Oil, Treasury Yields

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes slipped as government bond yields and crude oil jumped after President Donald Trump's rhetorical call for Iran to pay compensation dimmed hopes for a quick reopening of the Strait of Hormuz, the chokepoint for about a fifth of global oil and natural gas outflows.The Nasdaq Composite fell 0.3% to 26,605.36, and the Dow Jones Industrial Average fell 0.1% to 53,975.98 on Monday. The S&P 500 slipped less than 0.1% to 7,753.11.Energy and healthcare led the gainers while real estate and utilities were among the steepest decliners.Iran said it was nearing a final pact with Oman to define new shipping lanes between them through the Strait of Hormuz, but reiterated that the US must meet other conditions -- compensation and an end to sanctions and military threats -- before the critical waterway is reopened, Reuters reported.The US must lift its blockade of ports before Tehran agrees to fully reopen Hormuz, Iran's Foreign Ministry Spokesman Esmail Baghaei said Monday, according to CNBC. "As long as the US naval blockade continues, the necessary conditions for the reopening of Hormuz do not exist," Baghaei was cited as saying to Iran's news agency, Tasnim."I am likewise demanding compensation from Iran, for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts, for which they are famous..." President Donald Trump said in a Truth Social post. "Additionally, compensation should be paid to the families of the hundreds of thousands of innocent protestors that Iran has killed over the last 50 years..."The front-month US West Texas Intermediate crude oil contract jumped 5.2% to $82.22 a barrel, and global benchmark North Sea Brent advanced 5% to $87.76 a barrel, reflecting concern that Iran and the US are not getting closer to resolving the war.Shares of Chevron (CVX) were up 4.5%, the biggest gainer on the Dow.US Treasury yields rose, with the 10-year yield up 4.5 basis points to 4.7% and the two-year climbing 3.7 basis points to 4.24%.Gold futures rose 1.1% to $4,448.9, and silver futures jumped 3.8% to $65.92.In company news, Apple (AAPL) has enabled eligible Mac users in mainland China to connect Alibaba's (BABA) Qwen artificial intelligence service to Siri and Writing Tools, Reuters reported Friday. The arrangement gives Apple a locally developed AI option for Mac users in China, the report said.Jefferies downgraded Apple to underperform from hold while adjusting its price target to $263.66 from $285.56. Shares of Apple dropped 1.5%, one of the worst performers on the Dow.S&P 500 companies' quarterly earnings growth rate eased from a week ago as the healthcare sector's results weighed, Oppenheimer Asset Management said, adding that results overall remain "strong." Some 89% of the companies in the benchmark index have reported results, with earnings up by about 51% year over year, compared with 57% growth a week ago.

Dow JonesNasdaq CompositeS&P 500$AAPL$BABA$CVX
Asia Markets

Update: US Equity Indexes Mixed as Crude Oil, Treasury Yields Jump Amid Worsening Iran Geopolitics

(Updates with index/price moves and company news from the first paragraph.)US equity indexes were mixed in midday trading on Monday amid gains in government bond yields and higher crude oil prices as hopes faded for a quick reopening of the Strait of Hormuz, the chokepoint for about a fifth of global oil and natural gas flows.The Nasdaq Composite slipped 0.3% to 26,614.4, with the Dow Jones Industrial Average down 0.3% to 53,905.1. The S&P 500 was little changed at 7,755.6.Energy and healthcare led the gainers while real estate, technology and utilities were among the steepest decliners.Shares of Chevron (CVX) were up 4%, the biggest gainer on the Dow.President Donald Trump signaled a US emphasis on increasing economic pressure on Iran, saying that Washington is "low-keying" negotiations with the country, CNN reported.Iran said it was nearing a final pact with Oman to define new shipping lanes between them through the Strait of Hormuz, but reiterated that the US must meet other conditions -- compensation and an end to sanctions and military threats -- before the critical waterway is reopened, Reuters reported.The Iranian official, who had issued the demands on behalf of the Islamic Republic, has been replaced by the country's supreme leader with a veteran Revolutionary Guards commander who has previously voiced skepticism about talks with the US, CNN reported.The front-month US West Texas Intermediate crude oil contract jumped 4.2% to $81.49 a barrel, and global benchmark North Sea Brent advanced 4.3% to $87.09 a barrel.US Treasury yields rose, with the 10-year yield up 4.3 basis points to 4.7% and the two-year higher by 3.7 basis points to 4.24%.Gold futures rose 0.4% to $4,416.9, and silver futures jumped 2.8% to $65.27.In company news, Trade Desk (TTD) slid 5.5%, one of the worst performers on the S&P 500, following stock rating downgrades from multiple brokerages, including DA Davidson.Apple (AAPL) has enabled eligible Mac users in mainland China to connect Alibaba's (BABA) Qwen artificial intelligence service to Siri and Writing Tools, Reuters reported Friday. The arrangement gives Apple a locally developed AI option for Mac users in China, the report said. Jefferies downgraded Apple to underperform from hold while adjusting its price target to $263.66 from $285.56.Shares of Apple dropped 2%, one of the worst performers on the Dow.

Dow JonesNasdaq CompositeS&P 500$AAPL$BABA$CVX$TTD