US equity futures declined on Tuesday as rising geopolitical tensions prompted global investors to pare back equity exposure. Futures tied to the three major indices were down roughly 0.4%.
Reports of US strikes on Iran’s Kharg Island intensified the conflict, heightening concerns over potential further attacks on Iran threatened by President Trump. At the same time, Tehran continued to restrict tanker traffic through the strategic Strait of Hormuz, adding to investor unease.
Risk-sensitive tech stocks fell sharply in pre-market trading, with demand for speculative sectors hit by the deterioration in sentiment. Shares of Nvidia, AMD, and Micron were all trading significantly lower. Bank stocks were also mostly weaker.
In contrast, Broadcom gained more than 1.5% after announcing a long-term agreement with Alphabet to supply tensor processing units (TPUs).
