US Equities Decline Midday; Nasdaq Futures Down 1.57%, S&P Futures Down 0.59%; Gold Falls 1.15%

Lead US equity futures are broadly lower at midday. Nasdaq futures are down 1.57% and S&P futures are down 0.59%. Gold is down 1.15% and silver is down 3.33%. The VIX is up 3.16%. Session narrative US equity markets are trading lower at midday, extending declines from the morning session. Nasdaq futures are leading the losses, down 1.57%, with the Nasdaq 100 ETF (QQQ) also down 1.43%. S&P 500 futures are down 0.59%, and the S&P 500 ETF (SPY) is down 0.50%. The Dow futures are down 0.19%, while the Dow ETF (DIA) is down 0.16%. The Russell 2000 futures are down 1.00%, and the Russell 2000 ETF (IWM) is down 0.97%. The VIX, a measure of market volatility, is up 3.16%. Major U.S. indices are slipping lower as elevated energy prices and higher bond yields raise concerns that inflation could prompt Fed tightening and weaken confidence in further stock upside. Spot gold has dropped more than 1% to $4,362.79 per ounce. In corporate news, KKR has offered to acquire UGI Corp for $42.50 per share, causing UGI shares to jump. Cross-asset check In the commodities market, gold is down 1.15% and silver is down 3.33%. WTI crude is up 0.73% and Brent crude is up 0.59%. Natural gas is up 2.30%. Copper is down 1.87%. The US 10-year yield is down 0.25%. Long-duration Treasuries (TLT) are up 0.36%. The US Dollar Index is down 0.03%. EUR/USD is up 0.03%, while USD/JPY is up 0.13%. European equities also closed lower, with the Euro STOXX 50 down 0.9% and STOXX Europe 600 down 0.6%, as longer-term bond yields extended higher. The DAX closed 0.80% lower. Themes & continuing stories Geopolitical tensions remain a key focus. Brent crude oil is trading around $91 a barrel as uncertainty over the Strait of Hormuz persists amid US-Iran tensions and a reported vessel attack. US officials indicate that positive discussions took place with Iran, but Trump has decided to wait before negotiating. Russia is rerouting Kazakh oil exports via Novorossiysk instead of Ust-Luga. The UAE detected two ballistic missiles launched from Iran. On the economic front, fears of Fed tightening are impacting market sentiment, driven by energy prices and bond yields. The Atlanta Fed GDPNow Q3 estimate has dropped to 4.03%. The AI borrowing boom is also competing with Treasury bond demand, with AI-related debt supply from major tech companies swelling and adding pressure to long-dated Treasuries. Apple is facing regulatory scrutiny regarding its App Store commissions in the EU, with apps using Apple in-app purchases facing a 26% EU commission. What’s ahead Investors will continue to monitor geopolitical developments, particularly around the Strait of Hormuz and US-Iran relations. The impact of higher energy prices and bond yields on inflation and potential Fed policy will also remain a significant concern. Corporate earnings will be in focus, with Target due to report second-quarter results on Wednesday.