Iran Peace Hopes Fade, US Stock Futures Plummet Amid Oil Price Surge
US stock futures slumped on Tuesday as hopes of a peace deal between the US and Iran began to fade, pushing oil prices higher and government bond yields to multi-year highs.
According to Reuters, a senior Iranian official stated that Iran would shift to a 'fully offensive' military posture due to stalled negotiations with the US. Washington has also ruled out extending a temporary ceasefire agreement that expired on August 17.
The developments caused Brent crude futures to jump 0.4% to three-week highs, while the yield on the 30-year Treasury bond reached its highest level since 2007. The benchmark 10-year maturity yield held near its highest level since January 2025.
Heavyweight technology stocks were hit hard as high government bond yields potentially lower the present value of future tech profits and increase corporate borrowing costs. Tesla and Nvidia led losses among growth stocks, down 1.4% and 2%, respectively, in premarket trading.