Key Takeaways

• Futures slip: Dow futures fell 84 points (-0.2%), S&P 500 futures dropped 0.4%, and Nasdaq 100 futures declined 0.6%.
• Nvidia drops premarket: The AI chip giant fell ahead of Wednesday’s earnings, with Micron and Western Digital also dipping.
• Mixed Monday close: Nasdaq and S&P 500 fell, while the Dow advanced 0.3%.
• Yields stabilize: The Treasury sell-off has since stabilized, while oil prices traded lower.
• Iran’s new proposal: Tehran sent a plan to stop hostilities on all fronts including Lebanon, seek reparations, and demand U.S. troop withdrawal.
• Sanctions and blockade: Iran also demands removal of sanctions, unfreezing of funds, and end to the U.S. naval blockade.
• Same old terms: Reuters notes the offer doesn’t appear substantially different from terms Trump called “garbage” last week.
• Pakistan the messenger: Islamabad shared Iran’s proposal with the U.S., continuing its mediator role.
• Trump pulls strikes: The president canceled fresh attacks after a request from three Gulf leaders.
• “Serious negotiations”: Trump declared talks are now actively underway.
• Nuclear red line: Trump vowed “NO NUCLEAR WEAPONS FOR IRAN!” while keeping military ready for a “full, large scale assault.”
• Home Depot resilience: CFO Richard McPhail said homeowners remain financially protected, with Q1 results beating estimates.
• Google-Blackstone AI deal: The two companies will launch a new AI cloud company using Google’s specialized chips, lifting both stocks.
• Hims & Hers bond pricing: The telehealth firm priced $350 million in convertible bonds due 2032, after Monday’s 11% slump on its $300 million international expansion plan.

Futures linked to the main U.S. stock indices were subdued on Tuesday, as uncertainty swirled around the potential for a peace deal between Washington and Iran.

By 06:31 ET (10:31 GMT), the Dow futures contract had slipped by 84 points, or 0.2%, S&P 500 futures were down by 29 points, or 0.4%, and Nasdaq 100 futures had declined by 185 points, or 0.6%.

Traders were also preparing for results later in the week from artificial intelligence semiconductor giant Nvidia, which could shed more light on the state of the boom in enthusiasm around the nascent technology. Shares of Nvidia decreased before the start of U.S. trading, while memory chip and data storage names like Micron and Western Digital also dipped.

The main averages on Wall Street finished in mixed fashion on Monday, with the tech-heavy Nasdaq Composite and benchmark S&P 500 both falling. The outperformer was the blue-chip Dow Jones Industrial Average, which advanced by 0.3%.

Along with some profit-taking in tech stocks, market sentiment was clouded by an uptick in U.S. Treasury yields and elevated oil prices. The sell-off in government debt has since stabilized, while crude prices were last trading lower.

Iran’s Peace Proposal

Iran has sent a peace proposal to the U.S. which would stop hostilities on all fronts of their conflict — including in Lebanon — and seek reparations for damage caused by the conflict, according to reports in state media on Tuesday.

Tehran’s plan also calls for U.S. forces to exit areas close to Iran, as well as the removal of sanctions, the unfreezing of funds, and the end to an American blockade of Iranian ports, the IRNA news agency said.

Citing a Pakistani source, Reuters reported that Islamabad had shared Iran’s proposal with the United States. Pakistan has been a frequent intermediary between both sides since the start of the conflict in late February.

Notably, Iran’s latest offer does not appear to be substantially different from prior terms that U.S. President Donald Trump described as “garbage” last week, Reuters added.

On Monday, Trump said he had called off carrying out fresh attacks on Iran, following a request from three Gulf leaders.

The president claimed in a social media post that “serious negotiations are now taking place,” adding that, “in the opinion” of the Gulf authorities, a “Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond.”

He added that the agreement will include “NO NUCLEAR WEAPONS FOR IRAN!” — although he flagged that he had ordered the U.S. military to remain prepared to launch a “full, large scale assault on Iran, on a moment’s notice” if an accord is not reached.

Home Depot Sees Consumer Resilience — CNBC

Home Depot has said that homeowner shoppers are continuing to buy products from the do-it-yourself chain, despite headwinds from accelerating gasoline-pump prices.

Speaking to CNBC, CFO Richard McPhail said that the homeowner is “perhaps more protected financially than other customer cohorts,” although he flagged that customers are engaged “up to a certain point.”

The comments come after the company reported first-quarter results that exceeded analyst expectations. Shares of Home Depot were slightly higher in premarket U.S. trading.

Google-Blackstone AI Bombshell

Elsewhere, Alphabet’s Google and Blackstone Inc said they will launch a new AI cloud company using Google’s specialized chips, lifting shares in both groups.

Shares of Hims & Hers Health were marginally lower after the telehealth firm announced the pricing of a private offering of $350 million in convertible bonds due in 2032. The stock slumped by 11% on Monday after Hims & Hers unveiled a $300 million plan to support international expansion plans.