U.S. Stock Futures Slip as Chip Rally Cools and Samsung Profit Miss Disappoints

TLDR

• U.S. stock futures fell Tuesday after a record-setting Monday, with Nasdaq 100 futures down 0.9%
• Samsung Electronics forecast a 19-fold jump in Q2 operating income but its stock dropped nearly 7%
• The Dow hit a record close for a second straight session on Monday, driven by a tech rally
• Oil prices rose about 1.4% after Iran fired missiles at two commercial ships near the Strait of Hormuz
• Investors are now watching for Federal Reserve minutes due Wednesday and NATO summit headlines

U.S. stock futures pulled back on Tuesday after Wall Street posted a strong session the day before.

Nasdaq 100 futures fell 0.9% in early trading. S&P 500 futures were down around 0.2%. Dow Jones futures edged up slightly, adding about 48 points or 0.1%.

On Monday, all three major indexes closed higher. The Dow hit a record close for the second session in a row. The Nasdaq gained more than 1% as chip stocks rallied strongly.

The Monday rally was driven by renewed confidence in the AI trade, following a chip stock sell-off in June.

Tuesday’s pullback came after investors chose to step back from tech, even after a strong earnings preview from Samsung.

Samsung Earnings Beat Expectations But Stock Falls Hard

Samsung Electronics released a preliminary earnings report early Tuesday forecasting a 19-fold increase in second-quarter operating income.

Despite the beat, the stock dropped about 6.9%.

The results came in only 6% ahead of analyst estimates, which appears to have triggered profit-taking. The stock had surged roughly 382% over the past 12 months.

The benchmark KOSPI index in South Korea also dropped on the news.

Penguin Solutions is also reporting earnings Tuesday, giving markets another read on the chip trade.

Oil and Bonds React to Geopolitical Tension

Oil prices moved higher after Iran’s Islamic Revolutionary Guard Corps fired missiles at two commercial ships near the Strait of Hormuz.

Brent crude climbed 1.4% to $72.99 a barrel. West Texas Intermediate rose 1.4% to $69.48 a barrel.

The U.S. dollar ticked up 0.1% against a basket of currencies. The yield on the 10-year Treasury note rose 3 basis points to 4.51%.

There are no major U.S. economic data releases scheduled for Tuesday. Markets are also watching a NATO summit in Ankara, Turkey for any potential headlines.

Federal Reserve meeting minutes are due out on Wednesday, which investors will watch closely for clues on future rate decisions.

SpaceX also joined the Nasdaq 100 recently, with analysts flagging that the addition could bring increased volatility to the index.

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