S&P 500, Dow, Nasdaq Futures Flat After Indices End Lower On US-Iran Stalemate — DELL, PANW, FRVO, AAPL, TTWO In Focus

• The S&P 500 ended Tuesday 0.7% lower, while the Nasdaq 100 fell 1.3% and the Dow Jones Industrial Average dropped 0.8%.
• West Texas Intermediate crude topped $90 a barrel.
• Dell Technologies hiked its annual sales forecast by $25 billion. 

U.S. stock indices ended lower on Tuesday as geopolitical flare-ups in the Middle East pushed oil prices higher and raised bond yields, adding to investor concerns the Federal Reserve might hike interest rates in its September meeting.

The S&P 500 ended Tuesday 0.7% lower, while the Nasdaq 100 fell 1.3% and the Dow Jones Industrial Average dropped 0.8%. The Russell 2000, which tracks stocks with small market capitalizations, fell 1.2%.

Dow Jones Industrial Average futures, S&P 500 futures and Nasdaq 100 futures were marginally up 0.1% on Tuesday. 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) fell 0.7%, and Invesco QQQ Trust (QQQ) ended Tuesday 1.3% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was down 0.7%.

Meanwhile, the VanEck Semiconductor ETF (SMH) dropped 2%, and the iShares Semiconductor ETF (SOXX) eased 2%, tracking weakness in Nvidia (NVDA) stock. The broader Vanguard Information Technology ETF (VGT) rose 1.3%.

Retail sentiment on Stocktwits for QQQ, SPY, and DIA was ‘neutral’ with ‘high’ message volumes. 

US Market Drivers

Military action between the U.S. and Iran resumed on Tuesday for the second day. The strikes came as tensions in the Middle East escalated, sending oil prices higher. U.S. oil prices gained 5.2% to close at $90.22 per barrel. Brent futures added 4.6% to close at $94.65. The United States Oil Fund (USO) also gained around 4.8%.

Across the globe, bond yields advanced further on Tuesday. The yield on the benchmark 10-year U.S. Treasury note climbed to its highest mark since early 2025. Similarly, Japan’s 10-year yield touched a peak not seen since August 1996, while German yields surged to levels last recorded in 2011.

A global rise in yields has been fueled by investor anxiety that elevated crude prices could spark inflation, potentially complicating the Federal Reserve’s upcoming policy decision in two weeks. This volatility comes as markets enter September, which has traditionally been a weak month for equity performance.

“Always and forever, the stock market is going to struggle to digest big and kind of volatile moves in the bond market,” Ross Mayfield, Baird investment strategist, told CNBC. “I think this is with us for the near term and the long term.”

Key Trending Stocks

Dell Technologies Inc. (DELL): The laptop and server maker significantly raised its full-year financial outlook on Tuesday, driven by explosive global demand for AI-optimized servers. 

Palo Alto Networks (PANW): The company beat quarterly earnings and revenue expectations, while Next-Generation Security ARR jumped 63% year over year.

Take-Two Interactive Software (TTWO): An early peek into Grand Theft Auto VI dominated streaming leaderboards, pulling in 31.1 million views to secure the top position on Netflix Inc.’s (NFLX) global viewership charts. 

Apple (AAPL): Newly appointed Apple Inc. Chief Executive Officer (CEO) John Ternus struck a bullish tone on the company’s product roadmap on Tuesday. 

Fervo Energy (FRVO): The company announced a new power deal with Google, which RBC Capital said was expected but arrived sooner than expected.  

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