Dow futures up 125 points as chips rebound, Middle East calms

Dow futures rose about 125 points, or roughly 0.25%, on Tuesday as semiconductor stocks rebounded and Iran and Israel paused retaliatory strikes ahead of Wednesday’s US consumer-price index report. S&P 500 futures were up about 0.39% and Nasdaq 100 futures gained about 0.67% in premarket trading.

Chipmakers led the gains. Nvidia, Broadcom and Micron traded higher by roughly 0.8% to 4.4% as investors bought back into the sector after a sharp selloff last week. The prior retreat followed Broadcom’s weaker-than-expected forecast, which had raised concerns about valuations in technology and AI-linked names.

Reports that Iran and Israel halted attacks after an appeal from the U.S. president reduced concern that the conflict could widen or disrupt energy shipments. U.S. crude futures fell more than 2%, removing one near-term inflation risk that had unsettled markets in recent sessions.

Market attention was on the May consumer-price index due Wednesday. A stronger-than-expected jobs report last week increased concern that the Federal Reserve could keep policy tighter for longer or raise rates again this year. Traders will watch whether higher energy costs tied to regional tensions have begun to feed into broader price gains.

The pipeline of potential listings added to market interest. SpaceX is preparing a possible offering that could value the company near $1.75 trillion, and OpenAI has filed confidentially for a US initial public offering.

Individual stocks moved on company news. Applied Digital rose about 11.5% after signing a 15-year lease with a US hyperscaler at its Delta Forge 2 data-center site, a deal estimated to generate roughly $5.2 billion in revenue over the lease term. Nuvalent jumped about 39% after GSK agreed to buy the cancer-drug developer for $10.6 billion in cash, or about $124 per share, a roughly 40% premium to Nuvalent’s last close.

Traders remained watchful for the CPI release and any fresh signals on the Fed’s rate path ahead of the market open.