Investing.com -- U.S. stock futures drifted lower Tuesday, handing back some of the previous session’s gains after disappointing guidance from Oracle, as investors awaited Apple’s latest launch event.
By 06:50 ET (10:50 GMT), the Dow Futures contract was down 60 points, or 0.2%, S&P 500 Futures traded 11 points, or 0.3%, lower and Nasdaq 100 Futures dropped 35 points, or 0.2%.
The three major Wall Street indices closed higher Monday, with the tech-heavy Nasdaq Composite leading the way, gaining 1.1%, as Tesla (NASDAQ:TSLA) surged on optimism around artificial intelligence. The blue-chip Dow Jones Industrial Average ended 0.3% higher and the broad-based S&P 500 rose 0.7%.
Weak Oracle guidance weighs
This positive tone has disappeared Tuesday, after Oracle (NYSE:ORCL) offered up disappointing current-quarter revenue guidance after the close Monday as a tough economy pressured cloud spending by businesses.
The computer software company forecast second-quarter revenue growth of between 5% and 7%, lower than analysts' average estimate of 8.2%, causing its stock to slump over 9% premarket.
After a surge in cloud demand during the pandemic, businesses are rethinking their digitization plans, hurting Oracle as it plays catch-up in a segment dominated by larger rivals.
Apple’s “Wonderlust” eyed for iPhone news
Elsewhere, Apple (NASDAQ:AAPL) will also be in the spotlight as the world’s most valuable company hosts its annual fall hardware update in California later in the session, dubbed “Wonderlust” this year.
The tech giant is widely expected to unveil its new iPhone 15, complete with new features and perhaps a slightly higher price on the Pro models than the previous model.
Despite a dip in iPhone revenues in Apple's most recent quarter, the smartphone remains massively important, making up about half of the firm's total sales.
U.S. inflation to drive sentiment
Tuesday’s economic data slate largely consists of the NFIB small business optimism reading for August, which deteriorated slightly to 91.3 from July’s 91.9. This was the index's first fall in four months.
However, most attention this week will be on Wednesday’s release of the consumer price index for August, amid concerns that higher energy cost pressures could result in an upward surprise.
The Federal Reserve is widely expected to pause raising interest rates this month, but policymakers have been keen of late to warn that it was still too early to declare victory over inflation.
Crude gains ahead of OPEC report
Oil prices rose Tuesday, maintaining the recent positive tone generated by Saudi Arabia and Russia extending their voluntary supply cuts to the end of the year.
Traders are keenly awaiting a monthly report from the Organization of Petroleum Exporting Countries, due later in the day, especially for forecasts of Chinese demand, amid dwindling bets that the country will drive oil demand to record highs this year.
Industry data on U.S. crude stocks from the American Petroleum Institute are due later in the session, and are expected to continue the recent run of draws.
By 06:50 ET, the U.S. crude futures traded 0.9% higher at $88.03 a barrel, while the Brent contract climbed 0.7% to $91.29.
Additionally, gold futures fell 0.5% to $1,938.05/oz, while EUR/USD traded 0.3% lower at 1.0714.
(Oliver Gray contributed to this item.)