May 19 - U.S. stock index futures opened lower on Tuesday, pressured by declines in semiconductor shares and ongoing worries about inflation despite a pause in Treasury selling and a modest pullback in oil prices.
In premarket trade Nvidia slipped 1% and was poised for a third consecutive day of losses as investors stepped back from richly valued chip names that have been a significant driver of this year’s gains for U.S. equities. Companies tied to memory chips and data storage, which had surged in recent weeks, also gave up ground. Micron Technology fell 1%, Seagate Technology lost 1.6% and Western Digital dropped 2.3%.
The recent rally on Wall Street was interrupted on Friday when a rout in global bond markets stoked fears that major central banks could shift to tighter monetary policy. That bond-market shock coincided with rising oil prices tied to conflict in the Middle East, amplifying concerns about persistent inflation.
Brent crude futures eased 1.5% on Tuesday but remained above $110 a barrel after U.S. President Donald Trump said on social media on Monday that he had called off a planned military strike against Iran that had been scheduled for Tuesday while negotiations continued. Meanwhile, the benchmark 10-year Treasury yield cooled to 4.587% after touching its highest point since February 2025 on Monday.
"Risk sentiment is mixed on Tuesday, as investors weigh up the costs of the war in the Middle East," said Kathleen Brooks, research director at XTB. "There is a sense of frustration that there has been no break in the impasse between the U.S. and Iran and no clear path to a deal to end the war."
At 05:49 a.m. ET, Dow E-minis were down 145 points, or 0.29%, S&P 500 E-minis had shed 37 points, or 0.5%, and Nasdaq 100 E-minis had lost 226 points, or 0.78%. The Nasdaq, heavy with technology and growth companies, led losses on Monday as climbing yields pressured shares whose valuations depend significantly on anticipated future profits.
Market participants are now focused on minutes from the Federal Reserve’s most recent policy meeting due on Wednesday for clues about how much support there was within the committee for moving toward a neutral stance and stepping away from an easing bias.
Price action in futures markets suggests investors see roughly a 40% probability that the Fed will increase interest rates by at least 25 basis points in January, according to the CME’s FedWatch tool.
Corporate earnings remain another central influence on market direction. Nvidia, now the world’s most valuable company, is scheduled to report results on Wednesday, and investors will be watching for confirmation that strong artificial intelligence-related demand can validate elevated valuations across the sector. Walmart, the world’s largest retailer, is also set to release quarterly results this week, offering a potential read on how U.S. consumers are managing higher energy costs and broader inflationary pressure.
Among other premarket movers, cloud services firm Akamai Technologies declined 3.8% after announcing a $2.6 billion convertible bond offering.
Key points
- Semiconductor and data storage stocks trimmed gains, with Nvidia down 1% premarket and memory/storage names including Micron, Seagate and Western Digital all lower.
- Oil eased but stayed above $110 a barrel amid Middle East tensions; Brent dipped 1.5% after the U.S. president said he had held off a planned strike on Iran while negotiations continued.
- U.S. 10-year Treasury yield fell to 4.587% after reaching its highest level since February 2025, and investors await Fed minutes and major earnings reports including Nvidia and Walmart.
Risks and uncertainties
- Escalation of the Middle East conflict could push oil prices higher, sustaining inflationary pressures that weigh on consumer-facing sectors and overall market sentiment.
- Further upward movement in Treasury yields could continue to pressure technology and other growth stocks because their valuations rely heavily on expected future earnings.
- Corporate earnings, particularly from large technology firms and major retailers, may fail to meet elevated expectations, creating additional volatility across equities.