U.S. stock futures pushed higher early Tuesday as pressure on technology shares eased, with investors positioning cautiously ahead of a pivotal week for the artificial-intelligence trade. Futures tied to the Dow rose about 0.2%, S&P 500 futures added 0.3%, and Nasdaq 100 futures climbed 0.6% by early morning in New York.
Key takeaways
- Wall Street steadied on Tuesday after a tech-led pullback dragged the Nasdaq lower on Monday.
- Nvidia’s earnings later this week are seen as a major test of confidence in the AI trade.
- The 10-year Treasury yield eased toward 4.70% as oil prices retreated.
- Wednesday’s PCE inflation reading and signals from Jackson Hole are the next catalysts for the Federal Reserve’s rate path.
Tech weakness sets a cautious tone
The tentative optimism followed a downbeat Monday session. The S&P 500 slipped 0.28% to 7,652.86 and the Nasdaq Composite lost 0.76% to close at 25,980.19, while the Dow bucked the trend, gaining 140 points, or 0.26%, to 53,417.16. The weakness was concentrated in semiconductors, where a broad retreat in chipmakers weighed on sentiment across the wider market.
Micron shed 5.8%, while Advanced Micro Devices and Broadcom pulled back more than 3% and 2% respectively, and the iShares Semiconductor ETF slid 2.7%. The selloff underlined how heavily index performance now leans on a handful of large technology names, leaving benchmarks vulnerable when that group stumbles.
Where the major indexes stand
| Index | Monday close | Change |
|---|---|---|
| S&P 500 | 7,652.86 | -0.28% |
| Nasdaq Composite | 25,980.19 | -0.76% |
| Dow Jones Industrial Average | 53,417.16 | +0.26% |
All eyes on Nvidia
Much of the market’s attention is fixed on Nvidia, whose upcoming results are widely seen as a referendum on the durability of the AI rally. Traders are weighing that anticipation against escalating geopolitical risk, including new U.S. sanctions on Iran, alongside incoming housing and consumer data. A strong report could reassure investors that AI-related demand remains intact, while any disappointment risks reviving doubts about stretched technology valuations. Readers following this theme can also revisit our earlier coverage of how Wall Street braced for Nvidia’s high-stakes earnings.
Bonds find some relief
Bond markets offered a measure of calm. The U.S. 10-year Treasury yield eased to roughly 4.70% as oil prices retreated, unwinding part of last week’s supply-driven climb. Adding to the backdrop, the Treasury said it will roughly double the size of its liquidity-support buyback operations for longer-dated securities, effective September 9, a move intended to improve market functioning in the 10-year to 30-year maturity range.
Lower yields can ease pressure on rate-sensitive corners of the market, though analysts caution that the move does not resolve the deeper forces driving borrowing costs, including federal deficits and inflation expectations. Our recent piece on how the dollar reacted to Fed uncertainty over rate cuts offers further context on the policy backdrop.
Strategists urge patience
Some strategists are urging investors to look through the volatility. UBS’s Chief Investment Office advised clients to stay invested, arguing that strong corporate earnings should continue to support global equities even with elevated yields. The firm pointed to expectations of double-digit earnings growth in the U.S. and Europe as a reason to expect the equity rally to broaden rather than stall.
Global markets firm
Overseas, sentiment improved as the session wore on. Japan’s Nikkei 225 closed about 0.5% higher, South Korea’s Kospi rose 0.68%, and Australia’s ASX 200 added 0.68%. Investors now turn to Wednesday’s PCE inflation reading and signals from the Jackson Hole gathering for the next cue on the Federal Reserve’s rate path. For a broader view of equity strategy heading into the year, see our guide to navigating stock market trends and strategies for 2026.
Frequently asked questions
Why did tech stocks fall on Monday?
A broad pullback in semiconductor shares, including Micron, AMD, and Broadcom, dragged the Nasdaq lower and weighed on the wider market, reflecting how concentrated index performance has become in large technology names.
Why is Nvidia’s earnings report so important?
Nvidia is viewed as a bellwether for the artificial-intelligence trade. Its results are seen as a test of whether demand for AI infrastructure remains strong enough to justify current technology valuations.
What should investors watch next?
The key near-term catalysts are Nvidia’s earnings, Wednesday’s PCE inflation report, and commentary from the Jackson Hole gathering, all of which could shape expectations for the Federal Reserve’s interest-rate decisions.
This article is a market summary compiled from publicly reported figures and is for informational purposes only. It does not constitute investment advice.
