Stock Futures Drop as Chip Rally Halts, Trump Ramps Up Middle East Tension

Stocks looked set to drop on Tuesday as investors ditched some of the chip and memory names that had helped limit the market’s losses the previous session. The three major indexes closed in the red on Monday after President Donald Trump threatened to bomb Oman if it blocked U.S. efforts to strike a peace deal with Iran. “With both sides still far apart, investors grew pessimistic that the Strait of Hormuz would properly reopen any time soon… That put pressure on fixed income, particularly longer-dated sovereign bonds,” Deutsche Bank macro strategist Henry Allen said.