U.S. stock futures showed little movement Monday night as investors awaited major upcoming events, including Nvidia’s quarterly earnings report scheduled for Wednesday after the market closes, and the July personal consumption expenditure price index, also due Wednesday. The lingering caution came after the S&P 500 fell 0.28% and the Nasdaq Composite dropped 0.76% in regular trading, weighed down mainly by declines in semiconductor and technology stocks. Meanwhile, the Dow Jones Industrial Average gained 0.26%, supported by broader market rotation.

Asian markets mirrored the cautious tone Tuesday, with Japan’s Nikkei 225 down 0.55%, South Korea’s Kospi dropping 2.37%, and declines in mainland China and Hong Kong indices. These movements reflected broader concerns including the U.S. strategy announced Monday to impose tough global sanctions aimed at pressuring Iran amidst ongoing Middle East conflicts. Treasury Secretary Scott Bessent emphasized that individuals and entities aiding Tehran’s economy would face isolation as part of this expansive economic pressure campaign.

Government bond markets saw lower yields, partly fueled by reports that the Treasury Department might tap its nearly $1 trillion General Account to intensify government bond buybacks. The 10-year Treasury yield fell to 4.7%, following efforts to curb rising long-term yields. UBS advised investors to consider quality bonds with shorter maturities and maintain equity positions, citing strong corporate earnings growth driven by artificial intelligence investments despite moderate consumer spending.

Additional earnings reports lined up for the week include Bank of Montreal and Dick’s Sporting Goods on Tuesday before the open, along with Intuit, Box, and Zoom after the market closes. Investor focus will also be on consumer confidence data Tuesday morning, providing insight into consumer resilience and potential Fed policy direction. Federal Reserve Chairman Kevin Warsh’s speech Friday at the Jackson Hole symposium may add further market-moving commentary impacting both stocks and bonds.