US semiconductor equipment makers were down after ASML warned it may not achieve growth in 2026 because of US tariff uncertainty.
Applied Materials and Lam Research fell 2.8% each in premarket trading. KLA Corp was down 2.7%, while Teradyne lost 0.9%.
Bank of America gained 1.4% after its profit rose in the second quarter (Q2) as its traders brought in more revenue from tumultuous markets in Q2.
Yesterday, JPMorgan Chase and Citigroup posted better-than-expected results but remained cautious about US tariff policies.
Meanwhile, Johnson & Johnson rose 1% today after the drugmaker reported Q2 profit above estimates and raised its full-year sales forecast by around US$2 billion.
At 6:57am, Dow E-minis were up 24 points, or 0.05%, S&P 500 E-minis were down 1.5 points, or 0.02%, and Nasdaq 100 E-minis were down 36.75 points, or 0.16%.
The cautious mood in the markets followed yesterday’s inflation report, which pointed to rising prices fueled by President Donald Trump’s tariffs and dimmed hopes for deeper rate cuts from the Federal Reserve (Fed).
“Yet even now, the problem is that inflation risks are still being underestimated, with a remarkable complacency across key assets,” Deutsche Bank analysts said in a note.
Money markets pricing show traders are betting on just 43 basis points of Fed easing by year-end, with a July rate cut off the table and the odds of a September move now a coin-flip.
Investors will keep a close watch on producer prices data scheduled for release at 8:30 a.m. ET, searching for signs of rising costs at the factory gate.
Trade tensions also remained in focus after Trump announced a 19% tariff on Indonesian goods as part of a new deal, one of several rushed agreements ahead of an Aug 1 deadline for broader tariff hikes.
Meanwhile, the EU was preparing retaliatory measures should talks with Washington falter.
Still, investors have shown resilience in recent weeks.
The tech-heavy Nasdaq closed at a record high yesterday, powered by a jump in Nvidia’s shares after the chip designer announced plans to resume sales of its H20 AI chips to China.
The stock, however, eased 0.4% in premarket trading.
Global Payments rose 6.1% after the Financial Times reported that activist hedge fund Elliott Management built a significant stake in the payments technology firm.