Investing.com – U.S. stock futures were mixed on Tueday as renewed tensions between the United States and Iran kept investors on edge ahead of a pivotal week for markets. <\/p>\n
Traders are preparing for the start of second-quarter earnings season with results from the biggest U.S. banks, while a key inflation report and testimony from Federal Reserve Chair Kevin Warsh could shape expectations for interest rates. <\/p>\n
Meanwhile, Nvidia is tightening controls on who can buy its AI chips as Washington’s technology restrictions continue to ripple across the semiconductor industry. <\/p>\n
1. Futures slip before a busy week <\/p>\n
U.S. stock futures were mixed as investors stayed cautious ahead of several market-moving events, including major bank earnings, fresh inflation data and continued conflict in the Middle East. <\/p>\n
Markets are also digesting renewed volatility in technology stocks after a choppy few weeks for the artificial intelligence trade. <\/p>\n
This week could set the tone for the rest of the summer. Corporate earnings, inflation data and comments from Federal Reserve officials will all help determine whether stocks can regain momentum after recent weakness. <\/p>\n
2. Iran conflict remains in focus <\/p>\n
Geopolitical tensions remained elevated after the U.S. military completed a third consecutive night of strikes against Iran, targeting military sites it said were linked to attacks on commercial shipping. <\/p>\n
U.S. Central Command said the operation was intended to further reduce Iran’s ability to threaten vessels traveling through the Strait of Hormuz, one of the world’s busiest oil shipping routes. <\/p>\n
Earlier in the day, President Donald Trump reinstated a U.S. naval blockade against Iran and proposed charging a 20% reimbursement fee for protecting commercial ships passing through the Strait. <\/p>\n
The latest developments suggest the standoff between Washington and Tehran remains far from resolved, despite recent diplomatic efforts. <\/p>\n
The Strait of Hormuz remains one of the biggest risks to watch. Any prolonged disruption to shipping could push oil prices higher, fuel inflation and increase volatility across global markets. <\/p>\n
3. Nvidia tightens AI chip sales – FT <\/p>\n
Nvidia has reportedly cut by more than half the number of Asian customers authorized to purchase its artificial intelligence chips as it strengthens compliance with U.S. export restrictions. <\/p>\n
According to the Financial Times, the company has created a new “white list” of approved buyers and stepped up due diligence in Singapore, Malaysia and Japan. More than half of its previous customers were reportedly excluded, although companies can reapply after meeting the new requirements. <\/p>\n
Story Continues <\/p>\n
The move comes as Washington continues tightening controls aimed at preventing advanced AI technology from reaching restricted destinations, particularly China. <\/p>\n
The report highlights that demand for AI chips remains strong, but geopolitics is becoming an increasingly important factor for companies across the semiconductor industry. Export controls could influence sales growth even as global appetite for AI hardware continues to expand. <\/p>\n
4. Big banks kick off earnings season <\/p>\n
Second-quarter earnings season begins in earnest on Tuesday, with several of the largest U.S. banks set to report results. <\/p>\n
JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo and Citigroup will all release earnings, giving investors an early look at how corporate America performed during a quarter marked by geopolitical uncertainty and shifting interest-rate expectations. <\/p>\n
Bank earnings are often viewed as a barometer for the broader economy because they provide insight into consumer spending, business lending, investment banking activity and credit quality. <\/p>\n
For retail investors, the reports could offer important clues about the strength of the U.S. economy. Strong results may help reassure markets that businesses and consumers remain resilient, while weaker-than-expected numbers could increase concerns about slowing growth. <\/p>\n
5. Inflation data could shape rate outlook <\/p>\n
Investors will also be closely watching June’s Consumer Price Index report, due on Tuesday, for fresh clues about the path of U.S. interest rates. <\/p>\n
The inflation reading comes as markets increasingly expect the Federal Reserve to keep borrowing costs elevated for longer, with some investors even considering the possibility of another rate hike before the end of the year. <\/p>\n
Fed Governor Christopher Waller said on Monday that the central bank may need to raise interest rates if inflation remains well above its 2% target. Meanwhile, newly appointed Fed Chair Kevin Warsh is due to begin two days of congressional testimony that could provide further insight into the central bank’s thinking. <\/p>\n
Inflation remains one of the biggest drivers of the market. A stronger-than-expected CPI reading could reduce hopes for lower interest rates and weigh on stocks, particularly technology companies. A softer reading, meanwhile, could revive expectations that the Fed may eventually have room to ease monetary policy. <\/p>\n
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