U.S. Stock Futures Rise on Middle East Ceasefire Hopes, Tech Rebound

U.S. stock index futures pointed to a higher open on Tuesday, buoyed by renewed hopes for a ceasefire in the Middle East and a rebound in recently beaten-down technology stocks. Investor attention is also turning to a critical week of corporate earnings that could test the durability of the market's artificial intelligence-driven rally.

Geopolitical Hopes Boost Sentiment

Market sentiment improved after a senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire in its conflict with the United States. The news helped pull Brent crude futures back from a one-month high, easing concerns about energy costs and inflation even as the conflict continues to pose risks to global trade.

Analysts suggested that the market impact of the conflict might be contained. "While shipping confidence and oil production may take longer than expected to be fully restored, we expect limited pass-through to core inflation, keeping central banks from tightening aggressively," said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a note. "This means earnings growth should remain a key driver of the equity market."

Tech Earnings in Focus After Sell-Off

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The gains in premarket trading were led by semiconductor stocks, with the iShares Semiconductor ETF rising 3.8%. The advance follows a period of significant pressure on the sector, which saw the Philadelphia SE Semiconductor Index fall more than 20% from its late-June high, confirming a technical bear market despite remaining up about 66% for the year.

Investors are now looking ahead to quarterly results from Alphabet and Intel this week. The reports are seen as a key test for the AI sector, which has fueled much of this year's market gains but faces elevated profit expectations. The recent volatility in chip stocks had contributed to three straight sessions of losses for Wall Street's main indexes.

As of 5:19 a.m. ET, futures tracking the major U.S. indexes were higher:

• Dow E-minis were up 189 points, or 0.36%.
• S&P 500 E-minis gained 43 points, or 0.57%.
• Nasdaq 100 E-minis surged 415.75 points, or 1.44%.