A recovery in artificial intelligence stocks faltered while oil prices ticked back above $110 a barrel, as investors once again pulled back from risk.
Nasdaq futures fell 0.3% after the index jumped over 1% Monday, as AI infrastructure stocks come under pressure across the globe. Signs of strain were visible in Asia and Europe. Shares in South Korean data-center startup Elice tumbled as much as 33% on its stock market debut, while Swiss engineering group ABB fell over 6% even after raising its full-year guidance. Chip makers and AI infrastructure groups slid in U.S. premarket trade, too, with CoreWeave falling 2.9%. Futures for the S&P 500 were flat, while Dow Jones Industrial Average futures nudged up 0.2%.
The fresh run-up in oil prices further damped market sentiment. Front-month Brent crude contracts topped $110 a barrel, on track for its highest close since May 19, as supply risks in the Middle East mounted. Analysts at ANZ pointed to a marked increase in attacks on ships in the Persian Gulf.
Treasurys strengthened despite the rise in oil prices. Ten-year Treasury yields traded below 5.120%, while 30-year yields hovered around 5.455%, as government bonds again benefited from a flight to safety. Markets have significantly pulled back on their bets for an October Federal Reserve rate hike, with investors pricing a 92.8% chance of a hold, according to LSEG.
The dollar weakened and bitcoin fell by 0.7% to $81,332. New York gold contracts slipped below $4,150 a troy ounce.
Netflix earnings are in focus Tuesday after two of the streaming giant's top creative executives left the company over the last week. Earnings from United Airlines and General Motors are also due.
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