U.S. stock index futures were little changed early Tuesday, with gains limited by mixed overnight trade and lingering concerns over AI stock valuations.
The Dow Jones Industrial Average futures contract rose 248 points, or 0.5%, while S&P 500 futures advanced 39 points, or 0.5%. The Nasdaq 100 futures gained 296 points, or 1.0%, outperforming peers after Monday's broad decline in semiconductor shares.
The previous session saw the S&P 500 and Nasdaq Composite retreat as concerns over high valuations in AI-linked stocks weighed on sentiment. Focus now shifts to Nvidia's fiscal second-quarter 2027 earnings, scheduled for release after the market close on Wednesday.
Trade policy developments added pressure. Talks to avert U.S. tariffs of 50% on a range of Canadian products failed, prompting Ottawa to vow equal retaliation. The measures are not expected to take effect for several weeks, leaving room for negotiations. Separately, threatened U.S. tariffs on all Canadian exports of cars, trucks and steel have been postponed until January 2027.
U.S. Treasury Secretary Scott Bessent announced new economic sanctions against Iran during a press conference on Monday, escalating pressure amid ongoing hostilities. Iran has been in conflict with the U.S. since Washington and Israel launched a joint attack in late February. Bessent described the measures as an "economic attack on Iran's global financial connections," aiming to disrupt Tehran's support network. He also stated that President Donald Trump has asked other countries to cease interactions with Iran.
Investors will also monitor July personal consumption expenditures inflation data due this week. The Federal Reserve's annual Jackson Hole symposium begins on Thursday, with Chairman Kevin Warsh scheduled to speak on Friday.
