U.S. stock-index futures showed little movement on Tuesday evening as investors waited for Nvidia's quarterly results, while concerns about higher Treasury yields and inflation linked to rising crude prices kept markets cautious.
Futures snapshot - At 20:20 ET (00:20 GMT), S&P 500 futures were essentially flat at 7,374.50 points. Nasdaq 100 futures were down 0.2% at 28,881.75 points, and Dow Jones futures traded 0.1% lower at 49,425.0 points.
Market participants largely refrained from making large directional bets ahead of Nvidia's first-quarter earnings report, which is due on Wednesday. The chipmaker's results are being viewed as a key test of whether the recent AI-driven rally can continue.
Equity performance and bond-market backdrop - Earlier in the session, major U.S. equity indexes finished lower, marking a third consecutive decline for both the S&P 500 and the NASDAQ Composite. Technology shares and semiconductor stocks led the retreat as rising borrowing costs reduced appetite for higher-growth names.
At the same time, U.S. Treasury yields climbed. The benchmark 10-year Treasury yield rose as high as 4.69% intraday, its highest intraday reading since January 2025, while the 30-year yield remained above 5.1% - levels the market last saw in 2007. These elevated yields have been a headwind for growth-oriented equities.
Oil, geopolitical risk and inflation worries - Investors have also expressed concern that higher crude prices, driven in part by tensions in the Middle East and risks to shipping through the Strait of Hormuz, could rekindle inflationary pressures. Such a development could keep the Federal Reserve on a path toward higher interest rates.
Oil prices extended losses in Asian trading on Wednesday after U.S. President Donald Trump said Washington had delayed a planned military strike on Iran. Trump said the U.S. may still need to strike Iran again and disclosed he had been "an hour away" from authorizing an attack before postponing it amid renewed diplomatic efforts. Vice President JD Vance also said there had been progress in peace discussions with Tehran.
Nvidia and the AI trade - Market observers will scrutinize Nvidia's revenue growth, commentary regarding demand for AI processors, and remarks on hyperscale cloud spending when the chipmaker reports. Shares of Nvidia fell 0.8% during Tuesday's regular trading session as weakness spread through the semiconductor sector. Other firms tied to the AI theme, including cloud infrastructure providers and chip equipment manufacturers, also retreated.
How Nvidia frames near-term demand and capital spending by large cloud providers is likely to influence sentiment for AI-linked stocks across the market.
Other catalysts this week - Traders are due to receive the minutes from the Federal Reserve's April policy meeting later on Wednesday, which could offer additional insight into the central bank's interest-rate outlook.
Several major corporations are also scheduled to report earnings before the opening bell on Wednesday, including Target Corporation (NYSE:TGT), Hasbro Inc (NASDAQ:HAS), Analog Devices Inc (NASDAQ:ADI) and TJX Companies Inc (NYSE:TJX).
With elevated bond yields, oil-related inflation concerns and a slate of high-profile corporate reports ahead, market participants are maintaining a cautious stance as they await fresh data and corporate commentary that could sway risk sentiment.