Key Takeaways

• Futures fall: S&P 500 futures dropped 0.2% to 7,373.75, Nasdaq 100 futures fell 0.2% to 29,058.50, and Dow futures slipped 0.3% to 50,759.0.
• Peace deal hopes fade: The U.S. launched fresh strikes on Iran after Tehran downed a U.S. Apache helicopter Monday night.
• Second wave of attacks: Media reports showed a second round of U.S. strikes on Iran on Tuesday evening.
• CENTCOM’s framing: Strikes described as “self-defense” in response to “unjustified Iranian aggression.”
• Trump’s contradiction: The president claimed a deal was “close” and declared “total victory” imminent — just before new hostilities erupted.
• Iran-Israel pause undone: The brief halt to strikes agreed earlier this week is now in question.
• Wall Street falls: S&P 500 shed 0.3%, Nasdaq slid nearly 1%, Dow edged up 0.2%.
• Tech rebound runs out of steam: Chip stocks remain under pressure as AI return-on-investment doubts fuel profit-taking.
• Super Micro crashes 9%+: The server maker announced plans to raise $7 billion in equity-related sales for hardware purchases.
• Sector rotation underway: Investors pivoting to economically sensitive sectors as rate hike fears build.
• CPI Wednesday morning: Both headline and core readings expected to remain elevated after March and April’s sharp energy-driven gains.

U.S. stock index futures fell on Tuesday evening after new military action against Iran sparked more doubts over progress toward a peace deal, with focus turning to upcoming inflation data for more economic cues.

Technology stocks remained skittish as a recovery in chipmaking stocks fizzled out, with the sector still nursing deep losses from last week.

S&P 500 futures fell 0.2% to 7,373.75 points by 19:10 ET (23:10 GMT), while Nasdaq 100 futures fell 0.2% to 29,058.50 points. Dow Jones futures fell 0.3% to 50,759.0 points.

U.S.-Iran Peace Hopes Fade with Fresh Strikes

Hopes for a U.S.-Iran peace deal waned on Tuesday after the U.S. military said it had launched new strikes against the country over the downing of an Apache attack helicopter on Monday night.

Central Command said the strikes were in “self-defense,” and were in response to “unjustified Iranian aggression.” Media reports showed the U.S. launching a second wave of attacks against Iran on Tuesday evening.

The strikes came after President Donald Trump again claimed on Monday that a peace deal with Iran was close, and that the U.S. was ready to declare “total victory” over the country in two weeks.

Markets had held out some hope for a deal after Iran and Israel agreed to halt strikes against each other on Trump’s request earlier this week.

But the latest round of aggression pointed to little progress in peace negotiations, with focus now turning to potential Iranian retaliation for Tuesday’s attacks.

Wall Street Falls as Tech Rebound Loses Steam; CPI Data Awaited

Wall Street indexes fell on Tuesday after a recovery in battered technology stocks — especially chipmakers — ran out of steam.

The S&P 500 fell 0.3%, the Nasdaq Composite slid nearly 1%, and the Dow Jones Industrial Average rose 0.2%.

Chip stocks remained under pressure as growing doubts over the long-term returns of artificial intelligence spurred some profit-taking in the high-flying sector. This trend had sparked deep losses on Wall Street last week.

Server maker Super Micro Computer slid over 9% in aftermarket trade after the company said it plans to raise $7 billion in equity-related sales to help cover the cost of new hardware purchases.

Investors were also seen pivoting into more economically sensitive sectors, amid growing concerns that the Federal Reserve may hike interest rates in the face of rising energy-driven inflation.

Consumer price index inflation data for May is due on Wednesday morning, and likely to factor into market expectations for interest rates this year.

The data is expected to show both CPI and core CPI remaining elevated after rising sharply in March and April, as rising oil and gas prices spurred increased living costs.