Stock futures pointed to a mixed open on Tuesday, with technology-heavy indexes under pressure as a sell-off in chip stocks deepened. Nasdaq-100 futures fell 0.8% and S&P 500 futures dropped 0.1%, while Dow Jones Industrial Average futures rose 0.3%.
The declines followed sharp losses in Asian markets. South Korea's Kospi benchmark tumbled over 10%, with SK Hynix shares sinking more than 14% and Samsung Electronics shares falling more than 13%.
In the US, technology stocks opened lower. Nvidia shares fell nearly 1%, Micron Technology dropped over 6%, and Applied Materials and Advanced Micro Devices each fell more than 5%. The Nasdaq opened at 24,825.07, down 0.43%, while the S&P 500 opened at 7,395.55, down 0.24%. The Dow opened at 52,492.88, up 0.54%.
The extent of the sell-off in South Korea's benchmark index.
Nvidia is exploring a $250 billion funding backstop for OpenAI, according to reports. The move could reshape the competitive landscape in artificial intelligence.
Geopolitical developments also drew attention. The US and Iran have halted active fighting, and US President Donald Trump said the two sides were in diplomatic talks. Trump stated: 'There's a good chance that something could happen, and if it does, good.' He later added that a development in the talks is 'highly likely.'
The US Federal Reserve kicks off its two-day policy meeting on Tuesday. Markets expect the Fed to hold its policy rate at 3.50-3.75%, but a rate hike is also being priced in by traders.
Several major companies are reporting earnings on Tuesday, including Visa, Coca-Cola, Boeing, Ford, and PayPal. SK Hynix's earnings are due around 8 p.m. ET. Later this week, Amazon, Meta, Apple, and Microsoft are expected to report.
In corporate news, Johnson & Johnson proposed a $5.5 billion settlement offer to resolve most talc-related lawsuits. The company's shares rose over 1% after the announcement. Coca-Cola shares rose over 5% after the company revised its annual revenue and profit forecasts upward.
US consumer confidence data is scheduled for release at 10 a.m. ET on Tuesday, providing further insight into the economic outlook.