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 persisted, 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 on importer hedging activity, though state-run banks provided some support.

Oil prices declined more than 1% after reports that talks with Iran remain ongoing, providing some relief to energy markets. Gold gained ground as Treasury yields eased amid the regional uncertainty. The dollar remained range-bound as traders balanced Middle East 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 stocks drove market performance with a strong +2.48% gain, while Energy also posted solid returns at +1.79%. Defensive sectors struggled, with Utilities declining -2.97%, Consumer Discretionary falling -2.22%, and Real Estate dropping -1.64%.

Sector ETFs to Watch

Technology Select Sector SPDR Fund (XLK) remains in focus following yesterday’s outperformance and continued AI sector developments. Energy Select Sector SPDR Fund (XLE) may see volatility as oil prices react to Middle East diplomatic developments. Utilities Select Sector SPDR Fund (XLU) could face continued pressure after yesterday’s sharp decline.

Earnings in Focus

Several companies report earnings today, including PVH Corp with an estimated EPS of $1.89 on revenue of $2.02 billion. Chinese social platform MOMO is expected to report EPS of $1.59 on revenue of $2.40 billion. Online education company Gaotu Techedu faces expectations of a -$0.04 EPS loss on revenue of $1.64 billion.

Economic Calendar

No major US economic data releases are scheduled for today, leaving markets to focus on geopolitical developments and corporate earnings results.

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