US stock futures rose on Tuesday as hopes of a pause in the US-Iran conflict encouraged investors to return to battered semiconductor shares.
Nasdaq 100 contracts led the advance, while S&P 500 and Dow futures also moved higher before a stretch of technology earnings.
Alphabet and Intel will offer fresh evidence on whether AI spending can justify elevated expectations after the chip index entered a bear market.
The relief remains fragile as a proposed 10-day ceasefire has not been accepted, Houthi forces have threatened Saudi shipping, and President Donald Trump has opened another trade front with new tariffs on Canadian goods.
5 things to know before Wall Street opens
1. Futures rise as chip buyers return
Dow futures gained 227 points, or 0.44%, while S&P 500 contracts rose 0.57%. Nasdaq 100 futures jumped 1.44%, helped by a 3.8% premarket advance in the iShares Semiconductor ETF.
The rebound follows three consecutive declines for the main US indexes and looks partly driven by bargain hunting after the recent technology rout.
2. Diplomacy softens the oil shock
Markets are weighing a mediator-backed proposal for a 10-day ceasefire between the US and Iran.
Brent pulled back from Monday’s one-month high, easing immediate concern that energy costs will feed rapidly into underlying inflation.
UBS Global Wealth Management’s Mark Haefele expects the pass-through to remain limited, allowing earnings rather than aggressive monetary tightening to remain the main equity driver.
The respite is far from secure. The Houthis have threatened to restrict Saudi access to the Bab el-Mandeb strait, potentially widening the disruption beyond the Gulf and raising freight and insurance costs.
3. Alphabet’s spending plans take centre stage
Alphabet reports after Wednesday’s close. Investors will focus on Google Cloud growth, AI-related revenue and capital expenditure after a sharp rise in data-centre investment.
The numbers must show that spending is producing stronger demand and margins, rather than simply increasing the cost of competing in generative AI.
4. Intel must steady the semiconductor trade
Intel follows on Thursday after the closing bell. The Philadelphia Semiconductor Index ended Friday more than 20% below its late-June record, confirming a bear-market decline, even though it remains about 66% higher this year.
Guidance on data-centre demand, manufacturing progress and profitability could determine whether Tuesday’s rebound lasts.
5. Canada tariffs offset some of the relief
Trump announced 50% tariffs on about $20 billion of Canadian imports, including dairy, alcohol and consumer goods, while exempting products such as energy, potash and critical minerals.
The measure adds a fresh inflation and supply-chain risk just as investors are embracing hopes of Middle East de-escalation.
Nebius gained 7.7% before the bell after Nvidia disclosed a 9.3% passive stake in the AI-cloud company.
The move shows that appetite for selected AI infrastructure names remains strong, even as the wider semiconductor trade undergoes a painful valuation reset.
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