US Stock Futures Hold Steady as Investors Brace for Major Earnings, Monitor Mideast Tensions

U.S. stock index futures were nearly flat in Sunday evening trading as investors balanced a cautious outlook from rising Middle East tensions against the peak of the second-quarter corporate earnings season. The muted open follows a week where Wall Street benchmarks posted losses driven by a selloff in technology stocks.

By 9:40 PM ET (01:40 GMT), S&P 500 Futures were largely unchanged, Nasdaq 100 Futures edged up 0.1%, and Dow Jones Futures were also flat, according to Investing.com data.

Wall Street Pauses After Tech-Led Selloff

The major U.S. indexes ended the prior week on a lower note, snapping a two-week winning streak for the Dow. The decline was largely fueled by a sharp selloff in semiconductor stocks and profit-taking in high-flying artificial intelligence names.

For the week, the tech-heavy NASDAQ Composite fell 2.9%, while the S&P 500 lost 1.6% and the Dow Jones Industrial Average declined 0.9%. The selling pressure was significant enough to push the Philadelphia Semiconductor Index into bear market territory, signaling investor concern over valuations in the sector.

Geopolitical Risks and Oil Prices Rise

Investor sentiment remains fragile amid escalating military conflict between the U.S. and Iran. The U.S. Central Command reported that a third service member had been killed in recent fighting, adding to concerns over instability in the Strait of Hormuz, a critical channel for global energy supplies.

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The conflict has pushed crude oil prices to their highest levels in over a month. Brent crude futures climbed above $90 a barrel, while West Texas Intermediate traded above $84. Rising energy costs can complicate the Federal Reserve's inflation outlook, leading traders to reassess expectations for potential interest-rate cuts this year.

Earnings Season in Focus

Attention now shifts to a busy week of corporate earnings, which will provide fresh insight into the health of corporate America. Investors will closely watch reports from several key companies, including:

• Alphabet (NASDAQ:GOOGL)
• Tesla (NASDAQ:TSLA)
• Intel (NASDAQ:INTC)
• Coca-Cola (NYSE:KO)
• General Motors (NYSE:GM)
• IBM (NYSE:IBM)

Commentary from these firms on artificial intelligence investment, cloud computing demand, and consumer spending will be critical for setting market direction, particularly after the recent weakness in technology stocks.