US stock-index futures advanced on Tuesday as chipmakers extended their rebound and easing tensions in the Middle East helped restore some appetite for risk.
Futures tied to the S&P 500 rose about 0.39%, while Nasdaq 100 futures gained 0.67%. Futures linked to the Dow Jones Industrial Average advanced over 125 points, or 0.25%.
The move followed a two-day recovery in semiconductor shares after last week’s selloff, though investors remained wary before Wednesday’s US inflation report and fresh signals on the Federal Reserve’s rate path.
5 things to know before Wall Street opens
1. Chipmakers are leading the early rebound
Semiconductor stocks were again at the centre of the premarket move, with major chip names trading higher as investors bought back into the sector after Friday’s sharp retreat.
Nvidia, Broadcom and Micron were among the names reported higher before the bell, rising between 0.8% and 4.4%.
The rebound follows a selloff in technology and AI-linked shares triggered partly by Broadcom’s disappointing forecast, which renewed concerns that valuations had run too far after this year’s chip-led rally.
2. Middle East tensions ease, lifting sentiment
Risk appetite also improved after Iran and Israel said they had halted attacks on each other following an appeal from US President Donald Trump to respect a ceasefire.
The pause helped calm fears that the conflict could widen further or threaten energy flows through the region.
Oil prices fell more than 2%, easing one of the key inflation risks that had rattled markets in recent sessions.
3. CPI data is the next big macro test
The market’s main focus is now Wednesday’s May consumer price index report.
A stronger-than-expected US jobs report on Friday raised concerns that the Federal Reserve may keep policy tighter for longer, or even raise rates again this year.
Investors will be watching whether higher energy costs linked to the Middle East conflict have started feeding into broader inflation.
A hot reading could put pressure on rate-sensitive technology shares, while a softer number may help extend the rebound in growth stocks.
4. IPO pipeline adds to tech-market buzz
Blockbuster listings are also shaping sentiment.
SpaceX is expected to test demand for high-growth technology names with a record-setting IPO that could value Elon Musk’s rocket company at about $1.75 trillion.
The offering is being watched as a gauge of whether investors still have enough appetite for richly valued private-market leaders.
Separately, OpenAI has confidentially filed for a US initial public offering, joining rival Anthropic in moving towards public markets.
5. Single-stock moves remain active
Applied Digital jumped 11.5% in premarket trading after signing a 15-year lease with a US-based hyperscaler at its Delta Forge 2 site.
The deal is expected to generate about $5.2 billion in revenue over the lease term, underscoring demand for AI data-centre capacity.
Nuvalent surged 39% after GSK agreed to buy the cancer-drug developer for $10.6 billion, or about $124 per share, in cash.
The offer represents a roughly 40% premium to Nuvalent’s last closing price and marks a major oncology push for the UK drugmaker.
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