US Futures Mixed as Middle East Tensions Weigh on Asian Markets

US equity futures are trading mixed in pre-market hours as Middle East tensions continue to weigh on global markets, with Asian stocks sliding overnight despite ongoing AI sector optimism.

Overnight Market Developments

Asian markets extended their selloff as geopolitical uncertainty in the Middle East persists, offsetting positive sentiment around artificial intelligence developments. Indian shares faced particular pressure from continued conflict concerns and foreign outflows, while the rupee weakened against the dollar amid importer hedging activity.

In commodity markets, gold gained ground as Treasury yields eased amid Middle East uncertainty, while oil prices slipped after reports that talks with Iran are ongoing. The dollar remained range-bound as traders weigh geopolitical developments against upcoming US economic data.

Previous Session Recap

Monday’s session saw mixed performance across major indices, with the Nasdaq 100 (QQQ) leading gains at +0.60% to close at $742.74, while the S&P 500 (SPY) added 0.27% to $758.54. The Dow Jones (DIA) posted modest gains of 0.13% to finish at $511.44.

Technology emerged as the standout sector with a robust +2.48% gain, while Energy also posted solid performance at +1.79%. Conversely, Utilities faced the steepest decline at -2.97%, followed by Consumer Discretionary at -2.22% and Real Estate at -1.64%.

Sector ETFs to Monitor

Technology Select Sector SPDR Fund (XLK) remains in focus following Monday’s strong performance, while Energy Select Sector SPDR Fund (XLE) continues to benefit from Middle East tensions. Utilities Select Sector SPDR Fund (XLU) and SPDR S&P Retail ETF (XRT) warrant attention after significant declines in the previous session.

Earnings Calendar

Several companies report earnings today, including PVH Corp with an estimated EPS of $1.89 on revenue of $2.02 billion, and MOMO Inc expecting EPS of $1.59 on revenue of $2.40 billion. Other notable reporters include Gaotu Techedu and 21Vianet Group.

Economic Data Releases

Market participants will monitor any scheduled economic releases throughout the session, with particular attention to data that could influence Federal Reserve policy considerations amid the current geopolitical backdrop.

This article is generated from market data for informational purposes only. It does not constitute investment advice.