Stock futures were higher Tuesday as investors shrugged off a raft of

U.S. sanctions on Iran.

Brent crude oil retreated to around $88 per barrel after Bessent warned that countries and companies that do business with Iran would face retaliation from the U.S.

"The market seems largely unfazed by Washington's push for tighter economic pressure on Iran, with traders treating the U.S. effort to nudge partners away from Iranian trade as marginal rather than market-moving," ING said.

Global bond markets stabilized while the dollar strengthened to a one-week high. Bitcoin briefly jumped above $80,000 for the first time since May, as the Trump administration's efforts to hold down long-term interest rates reignited talk of a "dollar debasement trade".

Investors are now awaiting high-profile tech earnings releases - most notably Nvidia, which reports after the bell Wednesday. They are also expecting a host of inflation data later in the week.

Looking ahead, the Federal Reserve's annual Jackson Hole symposium starts on Thursday. Chairman Kevin Warsh's speech is expected to provide a meaningful update on how the Fed intends to tackle the inflation problem, particularly after the mixed messaging at the July press conference, Algebris said.

Stocks to watch

Intuit reports earnings after the bell.

Nvidia appeared on track to break its longest losing streak since 2022. It's up around 1% in premarket trading ahead of its much-anticipated earnings report tomorrow afternoon.

Strategy, Coinbase, American Bitcoin, Trump Media & Technology: The crypto-related stocks rose premarket as bitcoin continues to rally.

XPeng posted a widened loss amid a heavy push into physical AI such as humanoid robots and autonomous driving.

Watch For:

U.S. S&P Cotality Case-Shiller Home Price Index for June; U.S. New Home Sales for July; U.S. Conference Board Consumer Confidence for August; Bank of Montreal 3Q earnings

Today's Top Headlines/Must Reads:

- Nvidia Has Become a Banker to the AI Boom, Putting It on Dangerous Ground

- The Warnings That Came Before a War Now Reaching the Six-Month Mark

- The World's Craziest Stock Market Has Turned Into a Fright Ride

MARKET WRAPS Forex:

The dollar was steady after rising to a one-week high against a basket of currencies earlier after Treasury Secretary Scott Bessent announced new sanctions aimed at Iran.

The euro was flat. The currency is likely to stabilize against the dollar rather than extend its recent gains as it looks overvalued, ING said.

Bonds:

Treasury yields edged lower in European mid-morning trade as investors digest the Treasury's decision to increase long-end debt buybacks and its plan to economically isolate Iran.

Thirty-year Treasurys remain vulnerable to further selling pressure at current levels, even as yields are currently trading below the recent 19-year high, J.P. Morgan said.

Energy:

In midmorning European trade, the front-month Brent crude contract was down 2.6%, while WTI futures slid 2.7%.

Metals:

Gold prices were broadly stable after hitting their highest level since mid-May on Monday, as investors await U.S. inflation data and a speech by Federal Reserve Chairman Kevin Warsh later this week.

Copper

Copper prices ticked lower but held above $14,200 a metric ton after fresh withdrawals from London warehouses fueled concerns over tight inventories.

"Recent deliveries into LME warehouses helped ease some of the tightness," ING said. "However, the latest withdrawal suggests that any recovery in inventories may prove temporary."

Iron ore

Iron ore edged higher in early trading. Coking coal, a key steelmaking ingredient, is in short supply in China, after a deadly mine explosion in May, ANZ Research said.

TODAY'S TOP HEADLINES

Nvidia Has Become a Banker to the AI Boom, Putting It on Dangerous Ground

Nvidia's current financial position looks rock solid to say the least. But the financial engineering it is using to keep revenue growing introduces risks that could eventually cause real pain.

Nearly four years into an artificial intelligence boom that has brought Nvidia hundreds of billions of dollars in profit, the company is increasingly tapping its financial strength to keep customers buying its chips. Those chips have become the ubiquitous computational workhorses of the AI boom, a status quo Nvidia has an interest in maintaining.

Oura and Dunkin' Get Ready to Join IPO Bonanza

The final weeks of summer are typically quiet on Wall Street. This year, a parade of initial public offerings expected after Labor Day is making a lot of noise.

Fund managers and analysts say their calendars are full of meetings with companies eager to gauge investor interest for upcoming offerings.

Hyundai Motor, Union Reach Wage Deal to End Walkouts

Hyundai Motor has reached a tentative wage agreement with its labor union, ending months of on-and-off walkouts that have disrupted production.

The deal was reached on Tuesday, following the first full-day labor strike in a decade on Friday as unionized workers pressed their demands, the Korean carmaker said.

One of Taiwan's Biggest AI Winners Isn't a Chip Maker

The artificial intelligence boom has put the spotlight on tech companies, but one of Taiwan's biggest AI winners has nothing to do with chips-it's a furniture-component maker whose founder is now Taiwan's richest person.

King Slide Works makes components like cabinet hinges and drawer slides. It also makes the rails used in AI server racks. That may sound mundane, but the rails support extremely heavy servers while keeping them cool. Any malfunction could cost millions.

Trump Threatens 50% Tariff on Vehicles and Parts From Canada

President Trump said the U.S. would impose 50% tariffs on automobiles and parts from Canada starting in January, the latest escalation in a tit-for-tat trade conflict that erupted over the weekend.

"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," Trump said Monday on Truth Social. U.S. tariffs on Canadian automobiles now stand at 25%, with discounts for the U.S. content in cars, while steel tariffs are at 50%.

Bessent Faces an Uphill Battle to Lower Bond Yields Through Treasury Buybacks

The Treasury caught investors off-guard by deciding to ramp up its bond purchases-but it will be hard for Secretary Scott Bessent to counter risingyields and falling bond prices unless he overhauls the entire buyback system.

The Treasury has used buybacks since 2024 to take older bonds that weren't actively traded out of circulation, giving investors space to buy newer bonds and thereby improving market liquidity. The operations have been regular and predictable and weren't designed "to mitigate episodes of acute market stress" or change the debt markets structure, the Treasury stated in May 2023.

German Economy Gets Upward Revision for Second Quarter on Resilient Exports

Stronger exports helped Germany's economy grow faster than first reported in the second quarter of this year, overcoming some of the pain of higher energy prices from the Iran war, though growth is set to slow in the months ahead.

Gross domestic product in the eurozone's largest economy increased 0.3% on quarter in the three months through June, faster than the 0.2% first reported at the end of last month, Germany's statistics agency said Tuesday.

Trump Administration Prepares to Revoke Up to 200,000 Visas From Asylum Seekers

The Trump administration is planning what may be the largest mass visa revocation in U.S. history, targeting up to 200,000 foreigners who have applied for asylum status.

The government is looking to take away business and tourism visas from immigrants who officials say came to the U.S. for a short-term visit and then filed for asylum, State Department spokesperson Tommy Pigott said Monday. The State Department and Department of Homeland Security are reviewing all B-1 business and B-2 tourism visas, he said.

Supreme Court Removes Hurdle to Trump Directive on Mail Voting

WASHINGTON-The Supreme Court removed a legal obstacle that had stopped President Trump from imposing new restrictions on mail-in voting ahead of the midterm elections in November.

The court, over the dissent of three liberal justices, ruled that a trial judge was wrong to block the administration from implementing key provisions of a March executive order from Trump on mail ballots. That order called for the federal government to draw up lists of eligible voters and suggested that the U.S. Postal Service should refuse to deliver mail ballots in states that don't comply with new rules.

The Warnings That Came Before a War Now Reaching the Six-Month Mark

WASHINGTON-Days before going to war with Iran in February, President Trump summoned his intelligence chief to the Oval Office to ask whether a full-on assault was a good idea.

Iran was at its weakest point in decades, senior aides and Israeli Prime Minister Benjamin Netanyahu told him, providing Trump the rare opportunity to dismantle Iran's nuclear program and bolster his legacy as a peacemaker. The question was whether a large-scale attack would work and possibly topple the regime.

Bessent Launches 'Operation Economic Outcast' to Isolate and Squeeze Iran

WASHINGTON-Treasury Secretary Scott Bessent said the U.S. is launching a new campaign to isolate the Iranian regime, warning that countries and companies that do business with Tehran will face the wrath of the Trump administration.

"Let there be no ambiguity as to the position of the United States: An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power," Bessent said Monday during a press conference.

Write to priscila.barrera@wsj.com

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