US stock futures dropped before the opening bell on Tuesday, August 18 as Wall Street traders remained cautious amid ongoing geopolitical uncertainties
Nasdaq 100 futures fell 1.18% to $29,740.5, S&P500 futures were down 0.48% at $7,731.75, while Dow Jones Industrial Average were flat at $53,541 by 5:47 am ET or 4:17 pm IST.
Stock futures were in red against the backdrop of several cues, including a fall in chip stocks, and rally in oil prices.
Here are three reasons why US stock futures are slipping today:
Jump in oil prices
Oil prices surged for a third straight session today as the prospect of a near-term resolution to the US-Iran war faded, with President Donald Trump signalling that Washington is in no hurry to extend an agreement with Tehran. Brent crude rose above $91 a barrel, after settling at its highest level since late July, while West Texas Intermediate traded near $85.
Both countries continue to remain divided over several issues, including the Strait of Hormuz. Iran is negotiating with Oman over the management of the waterway, while Washington is not part of these talks. Trump has also threatened military action against Oman if it interferes with the US blockade, according to Fox News.
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Bond Yields Rise
In light of geopolitical tensions, the yield on the 30-year Treasury bond stood at its highest since 2007, while that of the benchmark 10-year maturity held near its highest level since January 2025 amid higher government spending and inflation risks.
Chip Stocks Tumble
Major chip stocks such as Sandisk, SK Hynix, Intel, Micron and AMD slid significantly during pre-market session today as investors remain uncertain over the semiconductor and artificial intelligence space.
The decline in these stocks was led by SK Hynix, falling 4.38% to $171.38, followed by Sandisk shares, dropping 4.28% to $1,786.85, Micron stock fell 4.2% to $1,011.75, Intel slipped 4% to $103.49, while AMD shares traded 1.63% down at $506.
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