Futures tied to the major U.S. benchmarks were trading up on Tuesday, signaling a potential rebound for stocks after a session in which fresh hostilities in the Gulf pressured markets. Investors continued to monitor escalating activity around the Strait of Hormuz and awaited additional economic data scheduled later in the week.
By 03:34 ET (07:34 GMT), Dow futures were up roughly 131 points, or 0.3%. S&P 500 futures were higher by about 19 points, or 0.3%, and Nasdaq 100 futures were trading up roughly 112 points, or 0.4%.
1. Futures push higher
The prior trading day saw the main U.S. averages slide as both the U.S. and Iran carried out new strikes in the Gulf, threatening to fracture an already fragile ceasefire. That escalation pushed oil prices back above $110 a barrel and prompted renewed risk aversion among some investors. Energy sector names rallied with crude, while a separate development in e-commerce logistics hit parcel carriers: FedEx and United Parcel Service fell sharply after Amazon unveiled a new offering that will increase competition for delivery services.
Alongside the moves in energy and logistics, a cluster of semiconductors and technology-related names were active. The market reaction reflected a mix of geopolitics-driven commodity moves and company-specific catalysts that will continue to shape sector performance into quarterly earnings season.
2. U.S.-Iran truce under strain
Hostilities between the U.S. and Iran flared again on Monday, with Tehran responding to efforts by the U.S. to reopen shipping lanes through the Strait of Hormuz. The waterway is a critical transit point for approximately one-fifth of global oil flows, and the renewed attacks underscored the vulnerability of tanker traffic in the region.
Multiple merchant vessels in the Gulf reported incidents involving fires or explosions. U.S. officials said they had assisted two American-flagged vessels in transiting the strait and had repelled attacks by Iranian drones and armed small boats. The confrontations also showed signs of widening across the region: in the United Arab Emirates, air defenses engaged ballistic missiles and drones launched from Iran, and an oil terminal in Fujairah was reported to have been attacked.
The U.S. administration has described its effort to reopen the shipping lane as a priority, though details of the plan - referred to in public statements as an operation to escort and protect transit - remain limited. Iranian officials cautioned Washington against becoming ensnared in an open-ended military engagement.
3. Oil market reaction
A de facto closure of the Strait of Hormuz for much of the conflict has driven oil prices sharply higher over the past two months, raising concerns about an inflationary impulse that could weigh on global growth. Nonetheless, some market participants noted early signs that U.S. escort operations may be easing Iran’s effective chokehold on the corridor.
In a related note, shipping company Maersk reported that a U.S.-flagged vehicle carrier operated by one of its subsidiaries had exited the Gulf through the strait with the assistance of American military support. Brent crude futures last eased by 0.8% to $113.56 a barrel, remaining well above levels seen before the conflict intensified.
4. AMD and the earnings calendar
Advanced Micro Devices will headline the corporate earnings schedule after the U.S. market close, with investors watching for updates on its competitive positioning against the leading artificial intelligence-focused chipmaker it has targeted. In February, AMD guided to slightly lower revenue for the first quarter, forecasting roughly $9.8 billion, plus or minus $300 million, compared with $10.27 billion in the prior quarter. That outlook came despite renewed sales activity in China, highlighting the challenge AMD faces in contesting for share against its larger rival.
Separately, data analytics firm Palantir posted results that beat quarterly estimates and raised its revenue outlook, but its shares fell in after-hours trading after the company’s finance chief warned that expenses were expected to rise in 2026. Those remarks tempered investor enthusiasm despite the top-line beat.
More broadly, the current earnings season has served as a source of support for markets unsettled by geopolitical risk, driven largely by strong results from AI-linked hyperscaler customers. Aggregate first-quarter profit growth among S&P 500 companies is now anticipated to be roughly 28% year-over-year, more than double expectations at the beginning of the reporting period in early April, according to LSEG I/B/E/S data.
5. Apple explores alternative chip suppliers
Apple has held exploratory discussions with Intel and Samsung about producing processors for its devices, according to people familiar with the matter. Those talks are intended to weigh options beyond Taiwan Semiconductor Manufacturing Co, Apple’s long-standing supplier for its custom chips.
The dialogues remain at an early stage and are driven by Apple’s desire to diversify its reliance on a single foundry for the processors that power iPhones, iPads and Macs. The company has reportedly engaged Intel about potential use of its foundry services, while executives have also visited Samsung’s chip manufacturing site under development in Texas. No final decisions have been taken.
Market implications and sector impacts
Geopolitical risk around the Strait of Hormuz has clear implications for energy markets and the inflation outlook, which in turn affects interest-rate-sensitive sectors. Logistics and delivery companies are reacting to increased competition from e-commerce platforms, while the semiconductor ecosystem remains a key focus as chipmakers report results and major device makers examine supply-chain strategies.
Investors will continue to parse earnings and guidance from technology and industrial names for signals about demand, production pacing and margin trajectories as the geopolitical backdrop evolves.
Key data points and company developments to watch in the near term include the close-of-day AMD results, any further operational updates about U.S. escorting of vessels through the Strait of Hormuz, and progress—or lack thereof—in Apple’s supplier discussions with Intel and Samsung.