Stock futures were lower Tuesday as hopes for a swift resolution to the

Mideast war faded and inflation concerns rear their head again.

Shares in AI-infrastructure companies dropped premarket amid volatility across the sector.

Global government bond yields rose to multiyear highs, with the 30-year Treasury yield rising to its highest since 2007, according to Tradeweb data.

"The worsening situation in the Middle East is likely a factor in intensifying concerns over inflation and concerns over the U.S. fiscal position," MUFG said.

"There remains zero appetite in the U.S. for addressing the U.S. fiscal position and that is increasingly weighing on the long-end of the curve."

Oil prices increased as hopes for a near-term deal to reopen the Strait of Hormuz dimmed, with the U.S. and Iran still far apart over control of the waterway and other key issues needed for a lasting peace.

"Brent crude rose to around $91 a barrel, extending its gains for a third consecutive session as the expiry of the U.S.-Iran ceasefire raised concerns about further disruption to supplies and shipping through the Strait of Hormuz," IG said.

For the day ahead, U.S. industrial production and housing starts data for July are among key releases.

Stocks to watch

Baidu reported lower revenue and profit, its U.S.-listed shares fell premarket.

Marvell Technology, Western Digital both fell more than 4% premarket as AI-infrastructure companies dropped amid volatility across the sector.

Watch For:

Housing Starts for July, Industrial production and Capacity Utilization for July, Earnings from Home Depot and Toll Brothers, Canada Housing Starts for July

Today's Top Headlines/Must Reads:

-Why Do Boards Keep Giving Misbehaving CEOs Second Chances? -How Wall Street Sussed Out That Situational Awareness Was On the Ropes -The Web of Hidden Deals That Snared the Dodgers Owner in a Federal Probe

MARKET WRAPS Forex:

The DXY dollar index was weaker.

The euro rose.

Sterling could extend its losses after the U.K. jobs data suggested little impetus for the Bank of England to raise interest rates this year, ING said.

The dollar recovered slightly as oil prices rose after Trump said he wasn't seeking an extension of the ceasefire with Iran which expired Monday.

Bonds:

The 30-year Treasury yield extended its recent rise, climbing to its highest level since 2007, according to Tradeweb data.

The 10-year yield also rose, hitting its highest level since end-July.

The two- to 10-year Treasury yield curve had scope to steepen further in the next three months, potentially to 70 basis points, DZ Bank said.

Energy:

In early European trading, Brent crude was up 0.1%, while WTI futures gained 0.5%.

Metals:

Gold prices slipped, pressured by higher oil prices and higher Treasury yields.

"Gold has nevertheless remained supported by renewed investor demand and stronger central-bank purchases, particularly from China," MUFG said.

Iron ore

Iron ore was steady.

Oversupply pressures were likely to intensify due to rising supplies from Australia and Brazil as well as new sources, ANZ Research said.

TODAY'S TOP HEADLINES

Costco Sells Vacations, Gas and, Soon, Medicare Plans

Costco sells its dedicated members everything from travel packages to gasoline. Now the retail giant is gearing up to enter a huge new market: Medicare.

The warehouse chain plans a limited rollout of Costco-branded Medicare plans, working with SCAN Group, a nonprofit insurer. Nationally, Medicare is a more than $600 billion business for insurers, but the two companies said they would start by selling their jointly named Medicare Advantage products in two states, and a Medicare supplement in a third.

Paramount Wants $1.88 Billion Bond From States, Writers Challenging Warner Deal

Paramount on Monday asked a judge to require 12 states and the Writers Guild of America to put up a nearly $1.9 billion bond for challenging its acquisition of Warner Bros. Discovery, money that would go to the company if it ultimately wins the case.

The aggressive maneuver came in a motion arguing that the plaintiffs should be held financially responsible for damages Paramount suffers during litigation seeking to block the $81 billion deal.

BHP Annual Profit Rises on Record Copper Prices

BHP Group reported a 9% increase in annual net profit and an even bigger gain in underlying earnings as prices of copper, now its main profit engine, surged to record highs.

Australia-based BHP, the world's biggest miner by market value, on Tuesday reported a net profit of $9.83 billion for the 12 months through June, up from $9.02 billion the year prior. A previously announced $2.3 billion write-down of a potash project in Canada weighed on its bottom line.

Unitree IPO Could Mark New Era for China's Robotics Sector

A coming listing by humanoid-robot startup Unitree could unleash a fundraising frenzy across China's robotics sector, with the debut serving as a key test of market appetite.

Hangzhou-based Unitree-officially known as Yushu Technology-is set to become the first humanoid-robotics company to trade on the mainland when it goes public on Shanghai's Nasdaq-like STAR Market on Wednesday.

Auto Insurance Premiums Have Room to Keep Falling

Falling car-insurance prices have been helping to cool off inflation data. Looking under the hood at insurers suggests they can keep going in that direction for a while.

Insurance is historically a cyclical business, featuring "hard" markets of rising premium rates leading to higher profitability, followed by "soft" markets of lower rates eating into those profits, and so on. Right now, it is a softening market in auto insurance. Car insurers are broadly dropping many rates to help them grow, following surges of premiums in the aftermath of the pandemic.

Diesel Buyers Compete for Shrinking Supply Pool

Diesel buyers are competing for shrinking supply amid disruptions in Russia and the Middle East, with the U.S. at the center of a scramble that could intensify into the winter.

The squeeze across the global refined-product markets, where gasoline, diesel and jet fuel compete for the same refinery capacity, is pushing prices higher.

The AI Trade Had 1 Sure Bet. Now Even That's Gone.

The tech pair trade that saw investors go long chips and short software lit up the stock market for much of 2026. Now it's on life support.

Through the end of June, the iShares Semiconductor ETF was up 113% while the iShares Expanded Tech-Software Sector ETF fell 14%. In July, though, the chip ETF tumbled 21%, while software rose 4.4%. That one-month move led to the sudden unwinding of once little-known hedge fund Situational Awareness, which had made heavily leveraged bets on the pair trade

Iran-Backed Houthis Threaten Coast Along Red Sea Chokepoint

Yemen's Iranian-allied Houthi rebels are escalating attacks along the country's Red Sea coast, shutting down operations at a strategic seaport and pushing closer to the Bab al-Mandeb Strait, an important global shipping chokepoint.

The militant group's recent missile and drone attacks forced the closure of the port of Mokha, a key logistics hub for civilian shipping and for anti-Houthi forces operating along the coast, Yemeni authorities said.

Why Trump Is Threatening Again to Bomb Oman

WASHINGTON-The White House for weeks promised that Iran was close to signing a nuclear deal and that Oman could be helpful in reopening the Strait of Hormuz. The tiny Gulf nation suddenly found itself at the center of the effort to end the war.

This deal, however, has proved elusive. And President Trump's frustration with this standoff prompted him to threaten to bomb Oman on Monday, as he alleged the country might be standing in the way of an agreement.

Trump Administration Pauses Construction in Texas' Big Bend National Park

Construction work in Big Bend National Park has been temporarily halted, U.S. Customs and Border Protection Commissioner Rodney Scott said Monday, while he assesses the southwest Texas site.

Scott said CBP would pause its projects in the national park as he conducts a "personal, on-the-ground evaluation." His agency had earlier awarded contracts for construction in the Big Bend area that sparked concerns the administration was building a wall that could damage the environment.

priscila.barrera@wsj.com

TODAY IN CANADA Earnings:

Nothing major scheduled.

Economic Indicators $(ET)$:

0815 Jul Housing Starts Stocks to Watch:

Air Canada Finalizes Terms of C$800 Million Substantial Issuer Bid; Offers to Purchase for Cancellation Up to C$800M Class A Variable Voting Shares and Class B Voting Shares; Offer Will Proceed by Way of a "Modified Dutch Auction"; Offer Allows Shareholders to Tender All or Portion of Their Shares at Price Ranging From C$29.00 to C$33.00 Each, in Increments of C$0.10; Offer Will Be for Up to 27.6M Shares, or About 9.8% of Air Canada's 280.1M Total Issued and Outstanding Shares; Offer Expected to Commence on Aug. 20 and to Expire at 11:59 p.m. (Eastern Time) on Sep. 24, 2026; Offer Lets Company Purchase Shares for Cancellation at Attractive Valuations

K92 Mining Names Operating Chief David Medilek as Next CEO; Medilek to Succeed John Lewins on Oct. 1; Lewins to Assume Role of Non-Executive Chair; Lewins to Succeed Independent Chair Anne Giardini; Chris Kinver to Succeed Medilek as Operating Chief

Reliance Worldwide Agrees to Takeover by Brookfield Capital Partners; Says Brookfield Offering A$4.75/Share in Cash; Says Brookfield Offer at 32% Premium to Monday's Close; Says Brookfield Offer Values Company at A$4.1 Billion Enterprise Value; Says Brookfield Made Three Earlier Bids to Acquire Company; Agrees to A$3.55 Billion Takeover by Brookfield

Swiss Water Decaff Coffee TSX Approves Share Buyback Under NCIB

Expected Major Events for Tuesday 06:00/UK: Jul UK monthly unemployment figures

08:30/UK: Jul Monthly Insolvency statistics

09:05/GER: Aug ZEW Indicator of Economic Sentiment

12:15/CAN: Jul Housing Starts

12:30/US: Jul Import & Export Price Indexes

12:30/US: Jul New Residential Construction - Housing Starts and Building Permits

12:55/US: 08/15 Johnson Redbook Retail Sales Index

13:15/US: Jul Industrial Production and Capacity Utilization

14:00/US: 2Q Quarterly Retail E-Commerce Sales

14:00/US: Jul Pending Home Sales Index

20:30/US: API Weekly Statistical Bulletin

23:50/JPN: Jun Orders Received for Machinery

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Tuesday AnaptysBio Inc $(ANAB)$ is expected to report $-0.13 for 2Q.

Anavex Life Sciences Corp (AVXL) is expected to report $-0.17 for 3Q.

Damora Therapeutics Inc $(DMRA)$ is expected to report for 2Q.

Healthier Choices Management Corp (HCMC) is expected to report for 2Q.

Hyperliquid Strategies Inc (PURR) is expected to report for 3Q.

Iridex Corp $(IRIX)$ is expected to report $-0.24 for 2Q.

Jack Henry & Associates Inc $(JKHY)$ is expected to report $1.47 for 4Q.

Keysight Technologies Inc (KEYS) is expected to report $2.16 for 3Q.

La-Z-Boy Inc $(LZB)$ is expected to report $0.49 for 1Q.

Mega Matrix Inc (MPU) is expected to report for 1Q.

Mercury Systems Inc (MRCY) is expected to report $0.11 for 4Q.

Sypris Solutions Inc (SYPR) is expected to report for 2Q.

Toll Brothers Inc $(TOL)$ is expected to report $2.93 for 3Q.

Vicarious Surgical Inc (RBOT) is expected to report for 2Q.

Wins Finance Holdings Inc (WINSF) is expected to report for Interim.

ZenaTech Inc $(ZENA)$ is expected to report for 2Q.

Powered by Onclusive and Dow Jones.

ANALYST RATINGS ACTIONS Astera Labs Raised to Outperform From Market Perform by Northland Capital Markets

Bain Capital Specialty Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Big Sky Industrial Raised to Buy From Accumulate by Johnson Rice

CAE Inc Raised to Outperform From Sector Perform by RBC Capital

CAE Inc. Raised to Outperform From Sector Perform by RBC Capital

cbdMD Cut to Hold From Buy by Maxim Group

Crescent Capital BDC Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Enovix Cut to Market Perform From Outperform by William Blair

Expand Energy Cut to Accumulate From Buy by Johnson Rice

EyePoint Cut to Neutral From Overweight by JP Morgan

JetBlue Cut to Neutral From Buy by Seaport Global

Magnolia Oil & Gas Raised to Accumulate From Hold by Johnson Rice

Okta Raised to Overweight From Equal-Weight by Wells Fargo

PennyMac Mtg Invt Tr Raised to Buy From Hold by Deutsche Bank

PrimeEnergy Resources Raised to Hold From Sell by Freedom Broker

SoFi Is Dividing Wall Street. This Is the Bull Case for the Fintech Stock.

Varex Imaging Cut to Market Perform From Outperform by CJS Securities

Westaim Corp. Cut to Speculative Buy From Outperform by ATB Cormark

Workday Cut to Neutral From Buy by BTIG

York Space Systems Cut to Neutral From Overweight by JP Morgan

This article is a text version of a Wall Street Journal newsletter published earlier today.