Geopolitics Weigh Heavily on US Stock Futures Ahead of Earnings

U.S. stock futures are pointing to a negative open on Tuesday, weighed down by heightened geopolitical risks in the Middle East and rising bond yields.

The Polymarket crowd is leaning heavily bearish for the Aug. 18 trading session, with only a 27% chance of a higher open.

Investors are awaiting earnings from major retail and tech names, including The Home Depot Inc. (NYSE:HD) and Baidu Inc. (NASDAQ:BIDU), on Tuesday.

Market expert Ed Yardeni notes that the S&P 500's forward P/E is currently at 19.9, slightly undervalued under the 'Fed's Stock Valuation Model' (FSVM).