Dow Jones futures slip as Iran denies IAEA inspection claims
Dow Jones futures fall by 0.72%, trading near 51,750 during the European hours on Tuesday. However, S&P 500 futures are down by 1.4% near 7,430, while Nasdaq 100 futures decline 2.29%, trading near 29,950 at the time of writing.
US stock futures declined as initial market optimism over a potential US-Iran peace agreement quickly faded. The shift in sentiment occurred after Tehran flatly denied a claim by US Vice-President JD Vance stating that Iran would allow International Atomic Agency (IAEA) nuclear inspectors back into the country. Following the first round of bilateral talks in Washington aimed at permanently ending the conflict, Iran's foreign ministry clarified to state media that the government had made "no new commitments" regarding its nuclear inspection policies.
Compounding these geopolitical headwinds, investors remained heavily focused on a hawkish policy outlook from the Federal Reserve (Fed). This restrictive stance from central bankers effectively canceled out any positive momentum that might have otherwise resulted from temporary signs of easing US-Iran tensions. The combination of monetary policy caution and geopolitical friction ultimately carried over from the previous session's losses on Wall Street.
During Monday's regular US trading session, a sharp sell-off in technology shares dragged down the broader markets, causing the S&P 500 and the Nasdaq 100 to slide by 0.37% and 1.32%, respectively. In contrast, the Dow Jones managed to buck the trend with a modest gain of 0.29%.
Major mega-cap technology stocks heavily led the broader market downturn. The tech-heavy decline was punctuated by SpaceX, which plunged 16.4% to mark its third consecutive losing session following the unveiling of a new bond offering.
Moreover, Alphabet fell 5%, Amazon dropped 4.8%, Broadcom slid 4.7%, and Microsoft lost 3.2%, while Meta Platforms also shed 2.3% of its value. Despite the sector-wide rout, semiconductor manufacturer Micron stood out as a major exception, jumping 6.8% after the company announced a new strategic partnership with AI firm Anthropic.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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