US stock futures rise as tech rally leads rebound
US stock futures advanced on Tuesday, led by a tech rally as semiconductor stocks jumped. Key movers included Cracker Barrel, Steel Dynamics, Nebius, Archer Aviation, and IREN. Analysts warn of macroeconomic risks and inflation due to geopolitical tensions.
*this image is generated using AI for illustrative purposes only.
U.S. stock futures advanced on Tuesday, with the Dow Jones, Nasdaq 100, and S&P 500 indices rising following Monday's lower close. The gains were led by a tech rally as the Invesco PHLX Semiconductor ETF jumped 4.27% in premarket trading. Top components Nvidia Corp., Micron Technology Inc., and Broadcom Inc. were also trading higher before the opening bell.
Market Context and Geopolitics
The market rebound occurred despite renewed geopolitical tensions. Yemen's Iran-aligned Houthis announced a naval blockade on Saudi Arabia on Monday, threatening to open a new front in the U.S.–Iran conflict. Additionally, at President Donald Trump's direction, U.S. forces carried out a new round of strikes against Iranian military targets to degrade Iran's ability to threaten commercial shipping. Meanwhile, the 10-year Treasury bond yielded 4.59%, and the two-year bond was at 4.20%. The CME Group’s FedWatch tool shows markets pricing an 83.4% likelihood of the Federal Reserve leaving interest rates unchanged during July's meeting.
Index Performance
The following table summarizes the index performance for the session:
| Index | Performance (+/-) |
|---|---|
| Dow Jones | 0.38% |
| S&P 500 | 0.55% |
| Nasdaq 100 | 1.36% |
| Russell 2000 | 0.88% |
The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF were higher in premarket trading. The SPY was up 0.56% at $746.28, while the QQQ advanced by 1.38% to $705.68.
Stocks in Focus
Several stocks moved significantly on corporate news. Cracker Barrel Old Country Store Inc. rose 2.34% after completing a sale-leaseback deal for 26 locations, netting roughly $77 million. Steel Dynamics Inc. fell 1.90% after reporting mixed second-quarter results; earnings of $3.69 per share missed estimates, while sales of $6.092 billion beat expectations. Nebius Group NV jumped 7.60% after Nvidia Corp. revealed it beneficially owns over a 9% stake. Archer Aviation Inc. rose 2.07% after unveiling an autonomous aircraft for defense use. IREN Ltd. was up 4.60% after signing $2.8 billion worth of cloud service contracts and raising its year-end annualized run-rate revenue target for its AI cloud business to $4 billion.
Cues From Last Session
Health care, materials, and industrials led broad losses across the S&P 500 on Monday, while communication services and energy stocks bucked the trend. The S&P 500 fell 0.19% to close at 7,443.28. The Dow Jones fell 0.59% to 51,839.26, and the Nasdaq Composite fell 0.048% to 25,508.07.
Analyst Insights and Commodities
Bitunix analyst Dean Chen noted that global financial markets face heightening macroeconomic risks and supply chain stress. He warned that escalating geopolitical conflicts are creating a dual energy and food supply shock, risking broader inflation. Chen observed institutional investors prioritizing liquidity to navigate multiple outcomes. In commodities, Crude Oil WTI futures were trading lower by 0.41% to around $82.14 per barrel. Gold Spot US Dollar rose 1.47% to around $4,066.56 per ounce. Bitcoin was trading 3.29% higher at $66,124.53 per coin.
How might sustained geopolitical tensions in the Middle East impact the semiconductor supply chain and tech sector valuations?
Will the surge in AI-related stocks like Nvidia and IREN prompt a broader rotation into growth equities if interest rates remain unchanged?
Could the rising gold price signal a longer-term shift in institutional investor sentiment toward safe-haven assets amid escalating conflicts?
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