U.S. stock index futures were modestly higher Sunday evening as market participants looked for stabilization in technology and chipmaking names that suffered deep losses the previous week, even as the conflict between Iran and Israel intensified over the weekend.
Market moves in the futures market
By 20:21 ET (00:21 GMT), S&P 500 Futures were up 0.1% at 7,411.25 points. Nasdaq 100 Futures gained 0.6% to 29,174.50 points, while Dow Jones Futures climbed 0.1% to 50,751.0 points. The modest gains in futures followed a pronounced sell-off on Friday, when major U.S. indexes posted sharp declines driven primarily by technology and chip stocks.
Geopolitical developments add to market unease
Concerns about the conflict in the Middle East resurfaced after Iran launched a volley of missile strikes against Israel on Sunday. The Iranian action was described as largely in retaliation for what Tehran characterized as increased Israeli aggression in Lebanon over the prior week. Reports indicated Israel was preparing retaliatory strikes against Iran, even as U.S. President Donald Trump urged Israel to exercise restraint, citing hopes for a potential peace deal with Tehran.
Iran’s strikes followed Israeli attacks on Hezbollah targets in Beirut’s southern suburbs earlier in the weekend, amid renewed hostilities in southern Lebanon. The weekend flare-up further clouded the outlook for a peace agreement, given Tehran’s insistence on a Lebanon ceasefire as a condition before any significant U.S.-Iran or Israel-Iran deal.
The recent exchange of air strikes between U.S. and Iranian forces over the prior two weeks also tested a fragile ceasefire and reduced prospects for a diplomatic resolution, despite repeated comments from President Trump that a deal was close.
Oil prices rose sharply after the weekend strikes, amplifying concerns about a prolonged conflict in the region and the potential for energy-driven economic disruptions - a theme that weighed on U.S. equities last week.
Recap of last week’s market volatility
Wall Street posted deep losses on Friday, led by steep declines in technology and chipmaking stocks as investors locked in gains after an extended AI-driven rally. The NASDAQ Composite recorded the largest drop, falling 4.2% to 25,709.43 points in its worst session since April 2025. The S&P 500 fell 2.6% to 7,383.74 points, while the Dow Jones Industrial Average declined 1.4% to 50,866.78 points.
Chip stocks bore much of the brunt of the sell-off amid heightened economic and geopolitical uncertainty, with AI bellwether NVIDIA Corporation (NASDAQ:NVDA) sliding over 6% on Friday.
Part of the pressure on equities followed a strong nonfarm payrolls report for May that surprised to the upside. The stronger-than-expected labor-market print suggested resilience in employment, which in turn increased the prospect that the Federal Reserve would have room to keep interest rates higher for longer. That dynamic contributed to a sharp rise in Treasury yields last week, which exacerbated equity market volatility.
Where markets stand now
Futures gains on Sunday reflected a tentative search for footing after a volatile week dominated by large tech-sector losses and rising geopolitical risk. While the futures moves were modest, traders remained attentive to developments on the ground in the Middle East, shifts in oil prices, and incoming economic data that could influence expectations for monetary policy.
In the near term, the balance between a potential rebound in technology and chipmaking stocks and the risks tied to renewed regional conflict and higher energy prices will likely shape market direction.
Summary
U.S. futures rose modestly Sunday evening as investors looked for stabilization in tech and chip stocks after a heavy week of losses, against a backdrop of renewed Iran-Israel hostilities and a stronger-than-expected jobs report that strengthened concerns about higher-for-longer interest rates.