U.S. stock futures pointed to a weaker open on Tuesday, with technology shares bearing the brunt of a surge in oil prices and renewed worries about interest rates. Nasdaq-100 futures fell roughly 1% in early premarket trading, while S&P 500 and Dow futures also declined, reflecting broad-based selling pressure.
At 05:54 EDT, Nasdaq-100 futures stood at 29,220.25, down 0.99% from the prior settlement of 29,513. The decline was front-loaded, with futures dropping 0.66% between 04:00 and 05:00 EDT, then easing just 0.03% over the next 54 minutes as selling paused, but buyers failed to fill the gap.
Oil prices climbed sharply as fresh clashes between the U.S. and Iran raised concerns about supplies through the Strait of Hormuz, a critical shipping lane. West Texas Intermediate crude gained 2.70% to reach $88.08 per barrel, while Brent crude rose 2.08% to $92.37. The energy rally provided a tailwind for oil producers but added to inflation concerns, which weighed on growth-oriented technology stocks.
Rates added a second layer of pressure. The 10-year Treasury yield finished at 4.758%, up 3.8 basis points, after Federal Reserve Chairman Kevin Warsh reiterated on Friday that inflation remained too high. According to LSEG data, the probability of a September rate hike stood at 67.5% as of 05:04 EDT, keeping rate-sensitive sectors under pressure.
Losses were widespread across major indices. S&P 500 futures dropped 0.57% from the previous close, Dow futures slipped 0.63%, and Russell 2000 futures retreated 0.55%. The Nasdaq carried the largest settlement gap, down 0.99%, followed by the Dow at -0.63%, S&P 500 at -0.57%, and Russell 2000 at -0.55%.
Sector performance highlighted a clear divergence. The Energy Select Sector SPDR Fund (XLE) rose 1.02% by 06:00 EDT, while technology (XLK) slipped 1.32%. Industrials (XLI) and real estate (XLRE) both declined around 0.5%, reflecting the broad risk-off tone outside energy.
In individual movers, GoPro Inc. (GPRO) surged 86.4% to $1.63 after Mark Fischbach, known as Markiplier, revealed an 8.5% stake in the company. Robinhood Markets Inc. (HOOD) rose 2.6% to $107.54 following an upgrade to Overweight by Morgan Stanley, which also lifted its price target to $150 from $124.
Large-cap stocks mirrored the macro split. Exxon Mobil (XOM) gained 0.8% and Chevron (CVX) rose 0.9%, benefiting from higher oil prices. On the downside, Nvidia (NVDA) slipped 1.2% and Apple (AAPL) declined 0.4%, as tech valuations came under pressure from rising yields and oil costs.
The Cboe Volatility Index (VIX) rose 6.3% to 15.86, indicating increased market anxiety. Investors will now turn their attention to economic data due later in the session, including manufacturing figures at 09:45 EDT and JOLTS job openings and construction spending at 10:00 EDT, which could influence rate expectations ahead of Friday's payrolls report.
Premarket trading carries risks due to limited liquidity, and quotes may shift. A continued rebound in oil prices could further benefit energy stocks but may also amplify inflation concerns, potentially widening the discount on growth equities.
