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US Equity Futures Mostly Lower Pre-Bell Amid Continued Middle East Standoff, AI Spending Concerns

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US equity futures were mostly lower pre-bell Tuesday as the US-Iran standoff continues with no end in sight, while concerns about heavy spending on data centers were brought into focus amid reports of OpenAI's missed targets.

Dow Jones Industrial Average futures were 0.1% higher, S&P 500 futures were down 0.8%, and Nasdaq futures were 1.4% lower.

President Donald Trump was unhappy with Iran's latest proposal to end the Middle East conflict, Reuters reported, citing a US official. Iran had proposed to reopen the Strait of Hormuz by deferring nuclear talks to a later date, while Trump wants nuclear issues dealt with from the outset.

Microsoft-backed (MSFT) OpenAI recently missed internal targets for new users and revenue, raising concerns among company leaders about being able to support its massive spending on data centers, according to a Wall Street Journal report that cited sources familiar with the matter.

Traders digested the latest round of earnings. Coca-Cola (KO) reported higher Q1 adjusted earnings and revenue, while Novartis (NVS) posted a decline in Q1 core earnings and net sales.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 2.5% at $104.21 per barrel and US West Texas Intermediate crude 3.6% higher at $99.84 per barrel.

The February S&P Case-Shiller home price index, scheduled for release at 9 am ET, is expected to show a 0.2% gain following a similar increase in the preceding month, according to estimates compiled by Bloomberg.

The April consumer confidence index, due at 10 am ET, is projected to fall to 89.0 from 91.8.

In other world markets, Japan's Nikkei closed 1% lower, Hong Kong's Hang Seng ended 1% lower, and China's Shanghai Composite finished 0.2% lower. Meanwhile, the UK's FTSE 100 was down 0.1%, and Germany's DAX index was 0.5% lower in Europe's early afternoon session.

In equities, Microsoft, which is OpenAI's biggest investor, and Oracle (ORCL), which relies on the ChatGPT creator for its cloud computing plans, saw their shares decline 1.3% and 7.6%, respectively. Novartis stock was down 1.4% after the company released its Q1 financial results.

On the winning side, Eni (E) stock was up 2.7% after the European energy firm and Repsol said they are planning to boost output at Venezuela's Cardon IV offshore gas field, according to a Reuters report. Bed Bath & Beyond (BBBY) shares were up 29% after the company reported a narrower Q1 adjusted loss and higher revenue. Coca-Cola stock was up 3% after the company published its Q1 financial results.

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Asia Markets

US Equity Indexes Mixed Ahead of Trump's Response to Iran's New Peace Proposal

US equity indexes were mixed on Monday, while crude oil futures rose with government bond yields, as investors awaited President Donald Trump's response to Iran's new peace proposal offering safe passage through the Strait of Hormuz.The Nasdaq Composite rose 0.2% to 24,887.10, and the S&P 500 edged up 0.1% to 7,173.91, each hitting an intraday record high ahead of big-tech quarterly results due mid-week. The Dow Jones Industrial Average fell 0.1% to 49,167.79.Iran has made a new offer to stop its attacks on ships in Hormuz in exchange for a full end to the war, including the US's lifting of its naval blockade of Iranian ports and the postponement of nuclear negotiations, The Wall Street Journal reported, citing officials familiar with the matter.Iranian Foreign Minister Abbas Araghchi presented the offer during his tour of the region and Pakistan over the weekend. Trump discussed the proposal with his national security team on Monday, White House press secretary Karoline Leavitt said. The president earlier said negotiations with Iran could happen over the phone instead of in person."We doubt that the US will go for this, since the US's economic blockade of Iran remains its key 'pressure tactic' in making Iran concede to the US's fundamental demands pertaining to Iran's power," Thierry Wizman, global foreign-exchange and rates strategist at Macquarie, said in a note.West Texas Intermediate crude oil futures rose 2.2% to $96.48, and Brent crude futures advanced 2.6% to $108.09.In precious metals, gold futures fell 1% to $4,695.1, and silver futures declined 1.4% to $75.36.Most US Treasury yields rose, with the 10-year up three basis points to 4.34%, and the two-year climbed 2.3 basis points to 3.8%.In company news, Shell (SHEL) agreed to acquire Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of US$16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin.Domino's Pizza (DPZ) reported weaker-than-expected Q1 results, with the company's chief executive officer saying consumer uncertainty and inflation weighed on demand late in the quarter. Shares slumped 8.8%, the worst performer on the S&P 500.Sandisk (SNDK) is expected to post another "strong" quarter and full-year outlook, benefiting from pricing momentum for NAND memory systems, Morgan Stanley said in a note Monday. Shares of Sandisk were up 8.1%, the top gainer on the Nasdaq.In economic news, the Dallas Fed's monthly manufacturing index fell to minus 2.3 in April from minus 0.2 in March, compared with expectations for a 0.8 print. The index indicates faster contraction, in contrast with other regional manufacturing readings already released.

Dow JonesNasdaq CompositeS&P 500$DPZ$SHEL$SNDK
Asia Markets

US Equity Indexes Decline, Crude Oil Jump Amid Stalled Iran Peace Talks

US equity indexes declined in Monday's midday trading as deadlocked negotiations to find a lasting solution for the Iran war pushed crude oil futures higher.The Nasdaq Composite fell 0.2% to 24,785.2, with the Dow Jones Industrial Average lower by 0.1% to 49,172.3. The S&P 500 was little changed at 7,167.6. All sectors except communication services, financials, and utilities fell. Consumer staples and materials led the decliners.In the absence of any face-to-face discussions in Pakistan this weekend, Iran offered a proposal to reopen the Strait of Hormuz and end the war, Axios cited a US official and two people with knowledge of the matter in a news report. That proposal, however, includes postponing nuclear negotiations between the two countries, according to the Axios report.President Donald Trump plans to meet with top national security officials today, according to two sources, to discuss the new Iranian proposal that would reopen Hormuz, CNN reported.Iranian Foreign Minister Abbas Araghchi is in Russia ahead of a meeting with President Vladimir Putin, following meetings in Pakistan and Oman. Araghchi gave Pakistani officials a list of "red lines" to be conveyed to the US, including "nuclear issues and the Strait of Hormuz," according to CNN.West Texas Intermediate crude oil futures jumped 3.4% to $97.62, and Brent crude futures advanced 4.2% to $109.75."Oil continues to grind higher as the Strait of Hormuz remains effectively closed, extending disruptions across the Middle East that continue to tighten the availability of critical commodities - from crude, fuel and gas to metals, fertilizers and petrochemicals," Saxo Bank analysts said in a note."Brent crude trades at a three-week high as efforts to revive peace talks have stalled, with an Iranian proposal reportedly calling for nuclear negotiations to be postponed to a later stage," the analysts said.In precious metals, gold futures dropped 1.2% to $4,683.80, and silver futures declined 1.9% to $75.49, as higher crude oil prices raise inflation concerns.Most US Treasury yields rose, with the 10-year up three basis points to 4.34% and the two-year climbed 3.2 basis points to 3.81%.In company news, Shell (SHEL) agreed to acquire Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of $16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin.Domino's Pizza (DPZ) reported weaker-than-expected Q1 results, with the company's chief executive officer saying consumer uncertainty and inflation weighed on demand late in the quarter. Shares slumped 10%, the worst performer on the S&P 500.Sandisk (SNDK) is expected to post another "strong" quarter and full-year outlook, benefiting from pricing momentum for NAND memory systems, Morgan Stanley said in a note Monday. Shares of Sandisk were up 7.5%, the top gainer on the Nasdaq.In economic news, the Dallas Fed's monthly manufacturing index fell to minus 2.3 in April from minus 0.2 in March, compared with expectations for a 0.8 print. The index indicates faster contraction, in contrast with other regional manufacturing readings already released.

Dow JonesNasdaq CompositeS&P 500$DPZ$SHEL$SNDK
Asia Markets

Exchange-Traded Funds Edge Lower as US Equities Fall After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM and IVV edged lower. Actively traded Invesco QQQ Trust (QQQ) eased 0.1%.US equity indexes declined in midday trading Monday as deadlocked negotiations to end the Iran war and a resulting move higher in crude oil futures hit investor confidence.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each shed about 0.3%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) was down 0.3%; iShares US Technology ETF (IYW) rose 0.1% and iShares Expanded Tech Sector ETF (IGM) lost about 0.3%.The State Street SPDR S&P Semiconductor (XSD) declined 3.7%, and iShares Semiconductor (SOXX) was down 1.9%.FinancialThe State Street Financial Select Sector SPDR (XLF) added 0.7%. Direxion Daily Financial Bull 3X Shares (FAS) climbed 2%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 2.1%.CommoditiesCrude oil rose 1.9%, and the United States Oil Fund (USO) gained 1.9%. Natural gas was up 2.7%, and the United States Natural Gas Fund (UNG) added 3.2%.Gold on Comex slipped 1.1%, and the State Street SPDR Gold Shares (GLD) fell 0.9%. Silver declined 1.7%, and iShares Silver Trust (SLV) was down 1.1%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) fell 0.7%. The Vanguard Consumer Staples ETF (VDC) shed 0.7%, and iShares Dow Jones US Consumer Goods (IYK) was 0.5% lower.The State Street Consumer Discretionary Select Sector SPDR (XLY) dipped 0.5%. VanEck Retail ETF (RTH) fell 0.4%, while the State Street SPDR S&P Retail (XRT) eased 0.2%.Health CareThe State Street Health Care Select Sector SPDR (XLV) fell fractionally, iShares US Healthcare (IYH) shed 0.1%, and Vanguard Health Care ETF (VHT) was marginally lower. IShares Biotechnology ETF (IBB) fell 0.1%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) slipped 0.2%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) also dropped.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 2.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) dipped 1.4%, ProShares Ether ETF (EETH) lost 1.9%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was down 1.5%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH