US stock futures were split on Tuesday as Wall Street prepared for the first major bank results of the quarter while another semiconductor sell-off hit growth shares.
Dow futures rose about 0.15%, S&P 500 futures were roughly flat and Nasdaq 100 futures fell 0.6% or 180 points.
Lower oil and a dip in Treasury yields offered some relief, but the market remains caught between two tests: whether bank earnings can broaden the rally beyond technology, and whether Wednesday’s CPI revives the rates pressure that has pushed long-dated yields to multi-decade highs.
5 things to know before Wall Street opens
1. The AI sell-off is now the biggest drag on Nasdaq futures
Semiconductors remain the clearest source of stress. Micron fell about 2.5% premarket, Intel lost around 2% and AMD was down about 1%, while Nvidia also slipped.
The pressure followed a brutal Asian session after China’s CXMT said it had made progress on a more advanced DRAM architecture. Samsung Electronics fell 7.4% and SK Hynix 10% in Seoul.
Morgan Stanley analysts cautioned that the memory cycle remains vulnerable to new supply even with AI demand strong. The concern is whether today’s exceptional chip margins survive rising competition.
2. Bank earnings are Wall Street’s first test of the rotation trade
JPMorgan, Goldman Sachs, Citigroup and Wells Fargo are due before the bell, with their shares higher premarket.
FactSet expects S&P 500 earnings to rise 29.6% in the quarter.
Gabelli’s Macrae Sykes told MarketWatch that banks still have a relatively healthy operating backdrop because employment and household balance sheets remain supportive.
3. Oil is falling, but the Middle East risk has not gone away
Brent fell about 1.2% to roughly $105.30 a barrel as traders weighed possible increases in Russian diesel supply against continuing Gulf attacks.
ANZ analysts told The Wall Street Journal that part of Tuesday’s decline may reflect a technical correction after recent gains.
Cheaper oil helps inflation expectations, but Brent above $100 still leaves corporate margins exposed to another supply shock.
4. Treasury yields ease, but Wednesday’s CPI still controls the macro story
The 10-year Treasury yield fell about five basis points to 5.19% as bond trading resumed after Monday’s holiday.
Wednesday’s CPI remains the key macro event, with core inflation expected to slow to 0.2% month on month.
A softer print could extend the relief in yields. An upside surprise would put pressure back on expensive growth shares.
5. UnitedHealth gives the Dow a major positive premarket mover
UnitedHealth rose about 3% after posting adjusted earnings of $4.69 a share, above the $4.14 expected, and raising its 2026 adjusted EPS outlook to at least $20.50.
Its medical-cost ratio improved to 88.4%, reinforcing the view that the insurer’s margin recovery is gaining traction.
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