18.08.202611:43:58UTC+00US 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.