U.S. equity futures showed little movement late Tuesday as a broad technology-driven advance during the regular session lifted major benchmarks to new peaks, even as fresh military actions in the Middle East raised questions about the durability of the market rally.
S&P 500 Futures traded flat at 7,539.25 points, while Nasdaq 100 Futures were steady at 30,082.75 points by 20:28 ET (00:28 GMT). Dow Jones Futures edged up 0.1% to 50,582.0 points.
In the cash session, the S&P 500 closed up 0.5% at a record high, and the NASDAQ Composite rose 0.9%. The Dow Jones Industrial Average diverged, slipping 0.3%.
Chipmakers were central to the advance. Memory-chip specialist Micron Technology experienced a sharp gain after a bullish brokerage assessment, which helped lift the Philadelphia Semiconductor Index to an all-time high. The stock's move also pushed Micron's market capitalization to $1 trillion for the first time.
Investor sentiment was clouded by renewed U.S. military action in the Strait of Hormuz. U.S. forces conducted strikes on Iranian vessels, actions that Iran characterized as a violation of a ceasefire while U.S. officials described them as defensive. At the same time, reports indicated that Israel carried out more than 120 air strikes in Lebanon on Tuesday. The article notes that Iran has sought an end to Israeli attacks in Lebanon as part of any potential deal.
Markets also absorbed moves in energy and fixed income. Oil prices remained volatile as traders evaluated the risk that heightened regional activity could disrupt global crude flows. Meanwhile, Treasury yields softened as investors shifted toward perceived safe-haven assets and reassessed the inflation outlook; the benchmark 10-year Treasury yield fell roughly 8 basis points to about 4.49%.
Looking ahead, market participants are focused on a slate of economic releases later in the week, notably the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures index, which investors will use for guidance on the likely path of interest rates.
Despite the geopolitical headwinds, market commentators cited continued enthusiasm around the prospect of AI-driven earnings growth as a factor supporting equity valuations.
Market snapshot - S&P 500 Futures 7,539.25 (flat); Nasdaq 100 Futures 30,082.75 (steady); Dow Jones Futures 50,582.0 (+0.1%).