U.S. stock index futures pointed to a mixed open on Tuesday as a violent sell-off in Asian chipmakers rippled across global markets, oil prices extended their retreat, and traders positioned for a busy slate of megacap-adjacent earnings and the Conference Board's July Consumer Confidence report ahead of Wednesday's Federal Reserve decision.
South Korea's Kospi index plunged nearly 11% on Tuesday on heavy selling of chipmaking stocks that have been battered recently by fears the boom in artificial intelligence (AI) may turn out to be a bubble. Most other markets in Asia, especially those with huge tech exposure, declined The risk-off tone in Asia followed a mixed Wall Street close on Monday, when the S&P 500 rose less than 0.1% and the Dow Jones Industrial Average rose 0.5%, while the Nasdaq composite fell 0.2% for its fourth straight loss.
Crude benchmarks remained on the back foot after Monday's slide, with traders citing progress in Middle East mediation efforts. Brent crude, the international standard, as well as the U.S. benchmark crude declined, Treasury yields eased and the dollar held recent gains as flows tilted defensive.
Premarket Snapshot
| Instrument | Level/Price | Change |
|---|---|---|
| S&P 500 futures | 7,441.75 | -0.09% |
| Nasdaq 100 futures | 7,441.75 | -0.79% |
| Dow futures | 52,517.00 | +0.26% |
| US 10-Year Yield | 4.624% | -1.7 bps |
| WTI Crude (front-month) | $81.11 | -1.82% |
| Brent Crude (front-month) | $86.54 | -2.06% |
| Gold futures | $4,021.10 | -1.37 |
| Dollar Index (DXY) | 101.60 | +0.07% |
| VIX | 18.94 | +1.45% |
| Bitcoin (BTC) | $63,429 | -2.83% |
Asian Markets: Chip Rout Triggers Circuit Breaker
The epicenter of Tuesday's selling was Seoul. The Korea Composite Stock Price Index (KOSPI) plummeted 10.84% to close at 6,023.63 points, briefly dropping over 11% intraday and breaching the key 6,000-point psychological level to hit a recent low, bringing its cumulative decline this month close to 30%. During morning trading, the Korea Exchange triggered a market-wide circuit breaker intraday, suspending trading for 20 minutes, marking the eighth time KOSPI has triggered a circuit breaker this year.
Samsung plunged over 13%, SK Hynix fell over 14%, and Kioxia plummeted over 18%, driven by fears regarding Chinese competition from ChangXin Memory Technologies and skepticism toward AI capital return cycles.. Japanese stocks were also under pressure, with the Nikkei 225 Index closing down 3.95% at 62,364.92 points, falling to its lowest level since May this year. Taiwan's benchmark gauge fell almost 4%.
Europe: Tech Drag Offset by Luxury, Consumer Names
European shares firmed up as a global selloff in technology stocks was balanced by earnings-driven gains in luxury and consumer stocks, with lower oil prices lending additional support. The pan-European STOXX 600 index held its ground. Investor sentiment was hit by a report from The Information on Monday that China has started manufacturing domestically developed immersion deep-ultraviolet lithography machines, a key chip-making technology long dominated by Dutch equipment maker ASML.
US Stocks in Focus
- PayPal (PYPL) — In focus ahead of Q2 results due before the bell. PayPal to release Q2 earnings on July 28. Analysts expect $1.28 EPS and $8.47B revenue. The stock also remains in the spotlight after a reported $53 billion takeover approach from Stripe and Advent International.
- Boeing (BA) — Reports before the open. Boeing is expected to report an adjusted EPS loss of 32 cents. Boeing Co. shares could move 4.9% when the company reports its earnings on July 28 before the market opens, based on options data compiled by Bloomberg.
- United Parcel Service (UPS) — Among the most anticipated earnings releases scheduled for Tuesday , with investors watching parcel volume trends and margin guidance.
- Coca-Cola (KO) — Premarket report expected to test consumer resilience narrative; Coca-Cola will report amid continued scrutiny of consumer resilience and pricing pressures. Investors will focus on organic revenue growth, volume trends and the company's ability to maintain margins. Higher costs and cautious consumer behavior could create headwinds if pricing increases begin to weigh on demand.
- Visa (V) — Reports after the close. Visa is expected to report an adjusted EPS of $3.22.
- Chip complex — U.S.-listed semiconductor names including Micron (MU), Nvidia (NVDA), Broadcom (AVGO), Marvell (MRVL) and memory-linked SanDisk (SNDK) are indicated lower in sympathy with Samsung and SK Hynix's rout in Asia and the ASML-linked lithography headlines out of China. Storage devices company Seagate (STX) is due to announce its quarterly results after the market closes.
- Corning (GLW), Ford (F), Hilton (HLT) — Also on the earnings docket; among the most anticipated earnings releases scheduled for Tuesday.
Macro Data Preview
The session's macro slate leans toward sentiment and housing before Wednesday's Federal Open Market Committee meeting (FOMC). U.S. Wholesale Inventories (8:30)–June provisional, S&P/Case-Shiller Home Price Index (9:00)–May, Richmond Fed Manufacturing Index (10:00)–July, Consumer Confidence (10:00)–July
The data lands one day before the Fed decision. Fed Chair Kevin Warsh and his colleagues face complex challenges as they gather for the July 28-29 FOMC meeting. As of Tuesday, CME FedWatch showed a 66.3% probability the Fed holds this week, down from 87.2% on July 17.
Key Technical Levels to Watch
With chip weakness threatening to spill into the broader tape, near-term S&P 500 pivots are back in focus. Major resistance: the 52-week high near 7,621. Near-term pivot: approximately 7,473, including the 50-day moving-average area. Initial support lies around 7,400. Deeper downside reference: around 7,300 if selling pressure broadens. Holding above it would suggest buyers are defending the trend, while a sustained break back below it could signal that the rebound is losing momentum.
For the Nasdaq 100 Index (NDX), the technical backdrop is more fragile after four straight losing sessions. Nasdaq was the worst performer last week with the index falling 1.8% to close just below a key support zone at 28,197/219. This level is defined by the 1.618% extension of the 2026 opening range & the June swing low and converges on the median line of the 2025 pitchfork. Weekly & daily momentum have now fallen to the lowest levels since the April breakout, and the momentum profile favors the bears while below this slope. On the Dow, losses would need to be limited to 50,150 if price is heading higher on this stretch with a close above 52,952 needed to fuel the next leg of the rally.
Retail is net long NQ, but that long bias is skewed toward the losing side. Longs make up 59.5% of profitable trades vs. 73.5% of unprofitable trades, according to MarketFramework's Positioning Edge tool. That nearly 14-point gap means longs are disproportionately ending up on the losing side of trades, while shorts (a minority of positioning) are punching above their weight on profitability.
