US index futures are trading lower during Tuesday’s session, with S&P 500 futures (US500) down nearly 0.7% and Nasdaq 100 futures (US100) losing almost 1.1%. Both benchmarks are heading for a third consecutive losing session. Uncertainty surrounding the Middle East remains elevated, while investors appear to be taking profits ahead of tomorrow’s quarterly earnings report from the world’s largest company, Nvidia (NVDA.US). The semiconductor sector is under particularly strong pressure.
Key developments
- According to Bloomberg reports, NATO is considering a potential military operation in the Strait of Hormuz if the key trade route is not reopened by July.
- The yield on 30-year US Treasuries climbed above 5.18%, reaching its highest level in nearly 19 years. Higher yields may increase mortgage and credit card borrowing costs, potentially weighing on consumer spending, while also adding pressure to highly valued technology and semiconductor stocks.
- Recent US data suggests inflationary pressures may be picking up again, partly due to higher oil prices following escalating tensions around Iran. Ed Yardeni believes the Fed may be “behind the curve” on inflation. In his view, a July rate hike could help contain inflation but would likely pressure equities.
- The US Pending Home Sales Index rose to 74.8 from 73.7 previously, signaling a modest improvement in housing market activity.
- Pending home sales increased 1.4% MoM, above expectations of 1.0%, although slightly below the prior reading of 1.5%. The data may be viewed positively for the US economy, suggesting continued resilience in the housing market despite elevated financing costs.
US500 chart (H1 interval)
The S&P 500 futures contract is lower today, but investor attention is focused primarily on semiconductor stocks. The Philadelphia Semiconductor Index is down 1.4% and has already retreated more than 8% over the past three sessions. Investors are taking profits after a strong rally, amid concerns about stretched valuations and the sustainability of data center spending.
Source: xStation5
As shown above, investors are clearly rotating out of semiconductor, electronics, and AI infrastructure stocks today. Software companies — a sector that has significantly underperformed since the start of the year - as well as consumer staples are outperforming. Big Tech stocks are broadly weaker, with Amazon shares down nearly 3%, while Alphabet (Google), Tesla, and Nvidia are also under pressure. Nvidia shares are once again struggling ahead of earnings.
Source: xStation5
Company news
Microsoft (MSFT.US) shares are not posting gains today despite the company unveiling new Surface devices aimed at business clients and AI acceleration applications. The new models are powered by Intel processors, representing another positive signal for Intel. However, Microsoft shares have already rallied more than 20% from their April lows.
Source: xStation5
Jazz Pharma shares extend gains
UBS upgraded Jazz Pharmaceuticals to “buy” from “neutral” and raised its price target to USD 307, implying more than 33% upside from Monday’s close. The bank points to the company’s resilient business model and the commercial potential of its oncology portfolio. Is Ziihera the key growth driver?
- UBS sees Ziihera, a treatment for gallbladder cancer, as the company’s main growth engine.
- The bank expects rapid adoption of the drug and a potential regulatory approval before the mandatory August 25 deadline.
- According to UBS, Ziihera could become a significant new revenue driver for the company.
UBS also remains positive on the stability of Jazz’s Sleep franchise, including Xywav and Xyrem. Pricing pressure and potential competition from Orexin-based therapies in the second half of 2026 are viewed as manageable risks. In the analyst’s view, these risks are outweighed by the growth opportunity represented by Ziihera.
The bank also highlighted Modeyso, a treatment targeting a specific type of brain cancer, which could generate meaningful sales over the next 1–2 years. Altogether, this supports the view that Jazz’s oncology pipeline may gradually become a more important contributor to the company’s financial results.
Jazz Pharmaceuticals (D1 interval)
Jazz Pharmaceuticals shares have gained almost 38% in 2026, while the stock price has doubled over the past 12 months. Despite the strong rally, analysts still see room for further upside, mainly driven by the potential of the company’s new therapies.
Source: xStation5
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