Rising Oil Prices Temper Optimism Ahead of Big Tech Earnings
US stock futures declined overnight as rising oil prices tempered optimism ahead of big tech earnings. The escalation in the US-Iran conflict drove Brent crude prices to a five-week high, surpassing $92 per barrel. Alphabet, Tesla, and Intel are among the notable names set to report Q2 results this week.
The Dow, S&P 500, and Nasdaq futures slipped between 0.1% and 0.21%, while major semiconductor companies continued their upward trend on Tuesday, with Nvidia climbing nearly 2% higher and Micron Technology surging over 13%. The VanEck Semiconductor ETF jumped 4.52%, its strongest performance in over a month.
Investors remain cautious due to the rising oil prices, but Lindsey Bell, chief investment strategist at 248 Ventures, believes the war will be seen as transitory due to upcoming midterm elections and concerns about $100 oil's impact on Trump's administration. Bell noted that investors are looking for strong earnings from big tech companies.