Dow Futures associated with the primary U.S. averages are in search of direction, as a series of significant earnings reports from the technology sector loom on the horizon. These results could play a pivotal role in shaping the future of the artificial intelligence boom. Elsewhere, the Federal Reserve is set to commence its two-day policy meeting, with officials expected to closely monitor inflationary pressures stemming from an energy shock linked to the conflict in Iran. President Donald Trump is scheduled to engage with Israeli Prime Minister Benjamin Netanyahu, as hostilities stemming from a collaborative U.S.-Israeli offensive against Iran in late February continue to be on hold.

Dow futures fluctuated around the neutral point on Tuesday, as investors prepared for a series of corporate earnings reports this week and evaluated the latest developments in the conflict in Iran. By 02:43, Dow futures had increased by 41 points, representing a 0.1% rise, while S&P 500 futures experienced a decrease of 20 points, or 0.3%. Meanwhile, Nasdaq 100 futures saw a decline of 264 points, equating to a 0.9% drop. The primary indices on Wall Street exhibited a mixed performance at the conclusion of trading on Monday. A sharp decline in oil prices and U.S. Treasury yields, attributed to a cessation of hostilities between the U.S. and Iran, provided a lift to equities. However, analysts expressed ongoing concerns regarding the potential for an energy-driven inflation surge and a more aggressive stance in Federal Reserve interest rate policy. Meanwhile, concerns persist regarding the sustainability of substantial investments in artificial intelligence infrastructure — a trend that is likely to face a rigorous examination as several major technology firms disclose their quarterly earnings on Wednesday and Thursday. Nvidia’s shares retreated following a report that the AI chip titan could provide a financial guarantee of approximately $250 billion to support a substantial OpenAI data center project. A blockbuster debut from Chinese memory chip maker CXMT, along with reports that iPhone-maker Apple has been advocating for the Trump administration to permit the use of Chinese chips in certain products, has heightened competitive concerns for American chip stocks. The Philadelphia Semiconductor Index, a tracker of the chip industry, experienced a decline of 2.2%. According to the Wall Street Journal, every stock in the index has closed below its respective 50-day moving average for the first time since April 2025.

Attention now shifts to a series of corporate earnings reports scheduled for this week. Before the commencement of U.S. trading on Tuesday, attention will be directed towards the results from the food and beverage producer Coca-Cola Company and the aircraft manufacturer Boeing. Investors are expected to closely monitor the effects of the Iran conflict on the prospects of consumer goods companies such as Coca-Cola, while also watching for indications of advancement in Boeing’s turnaround initiatives. After the bell, payments firm Visa will step into the spotlight, with the numbers potentially offering a glimpse at how consumer spending is holding up amid the economic uncertainty caused by the hostilities in the Middle East. Commentary from data-storage hardware provider Seagate Technology may offer valuable insights into the current landscape of robust AI-driven demand. However, the primary earnings announcements for the week are anticipated from Microsoft, Meta Platforms, Apple, and Amazon. These firms are referred to as AI “hyperscalers” that have outlined intentions to invest billions of dollars in the data centers and chips that support AI systems.

Beyond earnings, a new Federal Reserve interest rate decision on Wednesday will take center stage in market discussions. The central bank is set to commence its two-day meeting on Tuesday, with officials confronting what analysts characterise as atypical uncertainty regarding the suitable path for interest rates. Inflation data for June was softer than anticipated; however, the intermittent conflict in the Middle East, coupled with volatility in oil prices, has sustained expectations for persistent price pressures. Simultaneously, the labour market has seemingly progressed in a context characterised by low hiring rates coupled with subdued dismissals. In theory, increasing borrowing costs can help contain inflation, though it carries the risk of negatively impacting the economy and the labour market. Wagers currently indicate a two-in-three likelihood that the Fed will choose to maintain rates at 3.5% to 3.75%, while there exists a one-in-three chance of a 25-basis point increase, as demonstrated by CME FedWatch.

U.S. President Donald Trump is set to welcome Israeli Prime Minister Benjamin Netanyahu at the White House on Wednesday, as both leaders face a critical moment in the ongoing conflict with Iran. The U.S. and Israel initiated a joint assault on Iran in late February, marking the commencement of a six-month campaign that has unsettled global financial markets and poses a risk of escalating into a wider regional conflict. Trump has found himself in conflict with Netanyahu, particularly highlighted by a contentious phone call in June that intensified tensions regarding Israel’s military actions against Iran-backed Hezbollah militants in Lebanon. Netanyahu appears to be seeking to repair his relationship with Trump, particularly as he seeks the president’s backing for his re-election campaign in advance of a crucial vote in October, sources indicate. Currently, there appears to be no resolution in the ongoing conflict in the Middle East, even with the recent cessation of reciprocal attacks between the U.S. and Iran. On Monday, Trump indicated that the United States was involved in “good talks” with Tehran and suggested the possibility of a new ceasefire agreement. However, he cautioned that military strikes could resume if the negotiations were to break down.

South Korea’s KOSPI experienced a significant decline on Friday, primarily driven by substantial losses in domestic chipmaking stocks, as apprehensions regarding inflated AI-driven valuations and excessive investment in the technology intensified. Export-heavy sectors were unsettled by the U.S. announcement of a new 12.5% tariff on South Korea and several other nations. The KOSPI experienced a decline exceeding 10%, concluding at 6,023.66 points, despite Seoul’s announcement that the U.S. had consented to uphold a prior trade agreement, which would limit tariffs on the nation to 15%. Chipmakers exerted the most significant downward pressure on the KOSPI, as SK Hynix Inc experienced a decline of 14.65% and Samsung Electronics Co Ltd fell by 13.39%. Samsung and SK Hynix have experienced significant advantages from the AI boom, witnessing substantial growth over the past year driven by surging demand for memory.