FX.co ★ US Futures Turn Lower

US equity futures were mostly lower on Tuesday, extending the previous session’s losses as rising borrowing costs outweighed recent support from AI infrastructure stocks. Futures on the S&P 500 and Nasdaq fell 0.5% and 1.3%, respectively, while Dow contracts were little changed.

Long-term Treasury yields continued climbing to multi-year highs, as mounting inflation risks and a surge in bond issuance by AI-related firms prompted reassessments of term premia. Inflation concerns were further amplified by renewed gains in energy prices after the US signaled it would maintain a prolonged blockade on Iranian tanker exports.

AI-linked shares were broadly weaker, with Nvidia, Meta, Tesla, and Oracle each down as much as 3% in premarket trading. Credit-sensitive financials also came under pressure, with Goldman Sachs and JPMorgan both in negative territory. In contrast, Home Depot rose about 1% after reporting earnings that beat expectations, despite the drag from elevated borrowing and housing costs.