Nasdaq futures tank 200 points: 5 things to know before Wall Street opens

• Nvidia reports earnings Wednesday after falling five straight days, with customers warned AI server prices may rise over 15% due to surging memory costs
• Treasury Secretary Bessent to unveil tougher Iran sanctions at 2pm ET, potentially targeting oil buyers and pushing Brent crude above $91 and WTI above $85
• US imposed 50% tariffs on $20 billion of Canadian imports after failed negotiations, with Canada planning matching retaliation starting September 8

Market Summary: U.S. Futures Decline Ahead of Critical Week

Market Movement:

U.S. stock futures opened lower Monday, with Nasdaq 100 futures down 0.6%, S&P 500 futures falling 0.2%, and Dow futures roughly flat. The decline reflects investor caution ahead of multiple high-impact events.

Key Catalysts:

*Nvidia Earnings (August 26):* The chipmaker's fiscal Q2 results represent a critical test for the AI trade. Nvidia stock has dropped five consecutive sessions entering the report. Bloomberg reports AI server prices could rise over 15% due to surging memory costs, raising concerns about margin pressure and demand sustainability.

*Iran Sanctions:* Treasury Secretary Scott Bessent is expected to outline enhanced sanctions on Iran at 2 PM ET, targeting countries and companies trading with Tehran. Oil prices retreated ahead of the announcement, with Brent near $91 and WTI around $85. Analysts warn stricter export restrictions could reignite upward pressure on crude and inflation.

*Bond Market Pressure:* The 30-year Treasury yield hit approximately 5.34% last week—its highest level in 19 years. Elevated yields pressure technology valuations by increasing discount rates on future earnings as companies borrow heavily for AI infrastructure.

*Federal Reserve Outlook:* Fed Chair Kevin Warsh speaks at Jackson Hole on Friday, August 28, while July PCE inflation data arrives earlier in the week. Markets have tempered immediate rate hike expectations, but September policy remains uncertain given persistent oil pressures and high yields.

*U.S.-Canada Trade Dispute:* Washington imposed 50% tariffs on roughly $20 billion of Canadian imports after failed negotiations. Canada plans retaliatory measures effective September 8, adding inflation and earnings uncertainty for globally exposed companies.

Sector Impact: Technology stocks face particular headwinds from rising yields and the memory sector shows weakness, with Micron down 3% and SanDisk falling over 4%.