Futures Pointing To Initial Pullback On Wall Street

(RTTNews) - Stocks may move to the downside in early trading on Tuesday, giving back ground following the strength seen in the previous session. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.2 percent.

After helping to lead the markets higher during Monday's trading, technology stocks are likely to come under pressure early in the session.

The downward momentum for the tech sector comes following a nearly 7 percent plunge by shares of South Korean memory chipmaker Samsung Electronics.

Samsung reported a 19-fold spike in second quarter profits, but the company's stock tumbled amid concerns about spending and demand.

"Although Samsung's results were stellar, investors are getting nervous about the scale of money ploughing into AI and whether it's a bubble waiting to burst," said Dan Coatsworth, head of markets at AJ Bell.

A report from Reuters indicating Chinese startup DeepSeek is developing its own AI chip may also weigh on semiconductor stocks.

On the U.S. economic front, a report released by the Commerce Department showed a substantial increase in the size of the U.S. trade deficit in the month of May.

The Commerce Department said the trade deficit widened to $77.6 billion in May from a revised $54.6 billion in April.

Economists had expected the trade deficit to surge to $78.7 billion from the $55.9 billion originally reported for the previous month.

The sharply wider trade deficit came as the value of imports shot up by 3.3 percent to $395.3 billion, while the value of exports plunged by 3.2 percent to $317.7 billion.

Following the long Independence Day weekend, stocks moved mostly higher during trading on Monday. The major averages all moved to the upside, with the Dow reaching a new record closing high.

The tech-heavy Nasdaq led the way higher, jumping 288.49 points or 1.1 percent to 26,121.16. The S&P 500 also advanced 54.19 points or 0.7 percent to 7,537.43, while the Dow rose 155.84 points or 0.3 percent to 53,055.91.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index tumbled by 2.1 percent, while China's Shanghai Composite Index slumped by 1.3 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the German DAX Index is down by 0.5 percent, the French CAC 40 Index is up by 0.3 percent and the U.K.'s FTSE 100 Index is up by 0.6 percent.

In commodities trading, crude oil futures are climbing $0.46 to $69.01 a barrel after slipping $0.14 to $68.55 a barrel on Monday. Meanwhile, after jumping $41.80 to $4,167.50 ounce in the previous session, gold futures are rising $10.60 to $4,178.10 an ounce.

On the currency front, the U.S. dollar is trading at 161.82 yen compared to the 162.08 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1437 compared to yesterday's $1.1440.