U.S. stock futures rose Tuesday as easing tensions in the Middle East gave investors room to return to the technology trade. Dow futures were up 0.26%, S&P 500 futures gained 0.41%, and Nasdaq 100 futures rose 0.73%, with chip stocks again doing most of the heavy lifting.

The move follows a needed rebound on Monday, when the Nasdaq 100 recovered 1.6% after losing 5% over two sessions. That was not a full recovery, but it was enough to stop the selling from turning into something broader. The market's message was simple: as long as investors are willing to buy semiconductors, Wall Street can keep its balance.

The relief came from two places. First, Iran and Israel paused attacks after an appeal from Donald Trump, helping oil prices fall and reducing one of the market's most immediate risks. Second, chip stocks extended their recovery after last week's sell-off. Marvell, Broadcom and Micron all rose in premarket trading, while investors also kept an eye on Nvidia, Intel and Qualcomm.

But the market's strength remains narrow. The Nasdaq had climbed more than 30% in just over two months before last week's pullback. When a trade rises that quickly, it does not take much to shake it. The broader picture is clear. Wall Street has found some support, but it has not become less dependent on a small group of stocks. Semiconductors are carrying the market because they sit at the center of the AI story. That can keep working, especially if earnings hold up and infrastructure spending continues. But it also leaves the market vulnerable to any disappointment from the same companies investors have come to rely on.

That is why tomorrow's inflation report will be closely watched by investors. A strong jobs report last Friday revived concerns that the Federal Reserve could raise interest rates again this year. Higher rates are a problem for expensive growth stocks because they make future profits less valuable today.

Oil is another risk that has not gone away. Prices fell after Iran and Israel paused attacks, with Brent moving lower toward the middle of its recent range. But there is still no lasting peace agreement, the Strait of Hormuz remains shut, and Israel is continuing operations in Lebanon. .

In corporate news, SpaceX's planned listing could become one of the largest market debuts ever, with demand reportedly strong and a valuation near $1.75 trillion. OpenAI has also confidentially filed for a U.S. IPO, following Anthropic's move toward public markets. The AI boom is no longer confined to private funding rounds. It is heading straight for public investors, who are enthusiastic but not always patient.

There are other stories in the market, too. Applied Digital rose after signing a 15-year lease with a U.S.-based hyperscaler for an AI data-center site, a deal expected to generate about $5.2 billion in revenue. Nuvalent surged after GSK agreed to buy the cancer-drug developer for $10.6 billion. Perrigo fell after its chief executive and president resigned following a conduct violation. Vail Resorts cut its outlook again after poor winter conditions. Mission Produce swung to a loss as avocado pricing hurt revenue and margins. Even in an AI market, avocados still get a vote.

Today's economic highlights:

Today's schedule includes: in Australia, the Westpac Consumer Confidence Index, Westpac Consumer Confidence Change, NAB Business Confidence, and the RBA Bulletin; in China, exports, imports, and the balance of trade; in Germany, exports, the balance of trade, and industrial production; in the United States, imports, exports, the balance of trade, existing home sales, and the API crude oil stock change; in Canada, the balance of trade; in the Euro Area, the speech by ECB President Christine Lagarde. See the full calendar here.

  • Dollar index: 99.711
  • Gold: $4,340
  • Crude Oil (BRENT): $89.50 (WTI) $92.76
  • United States 10 years: 4.55%
  • BITCOIN: $63,320

In corporate news:

  • Apple failed to make its AI tool compliant with EU regulations, EU Commission says.
  • Alphabet participates in a $400 million funding round for NinjaOne.
  • Meta Platforms backs America's Workforce Academy with a $115 million investment.
  • The CEO of Nvidia declines the invitation to testify before the Senate on chip export controls.
  • Microsoft, HSBC, and other giants sign an agreement with the UK on the adoption of AI in business.
  • Meta is under investigation by the Italian competition authority regarding WhatsApp's AI tool.
  • Cadence and Intel Foundry strengthen their collaboration on Intel 14A technology.
  • Sempra and Qualcomm are launching an AI-powered wildfire monitoring initiative with UC San Diego.
  • Merck and Gilead are halting the Phase 3 trial combining Trodelvy and Keytruda for lung cancer.
  • Uber sees its push into Delivery Hero thwarted by a Saudi startup.
  • The Pentagon accuses Alibaba, Tencent, BYD, and CATL of ties to the Chinese military.
  • The CEO of Vale says demand for metals remains robust despite the conflict with Iran.
  • Tencent sets the terms of its $4 billion bond offering.
  • SK Hynix orders 44.2 billion won worth of equipment from Hanmi.
  • Today's main earnings reports : Robinhood Markets, Inc., Casey's General Stores, Inc., The J. M. Smucker Company, SailPoint, Inc...

Analyst Recommendations:

  • Arthur J. Gallagher & Co.: UBS upgrades to buy from neutral and reduces the target price from USD 283 to USD 250.
  • Equity Residential: RBC Capital downgrades to sector perform from outperform with a price target raised from USD 69 to USD 70.
  • Lennar Corporation: Keefe Bruyette & Woods downgrades to underperform from market perform and reduces the target price from USD 97 to USD 86.
  • Toll Brothers, Inc.: Keefe Bruyette & Woods upgrades to outperform from market perform and raises the target price from USD 158 to USD 161.
  • Carvana Co.: D.A. Davidson maintains its neutral recommendation and reduces the target price from USD 335 to USD 67.
  • Crowdstrike Holdings, Inc.: Daiwa Securities maintains its outperform rating and raises the target price from USD 500 to USD 750.
  • Lululemon Athletica Inc.: Daiwa Securities maintains its neutral recommendation and reduces the target price from USD 173 to USD 120.
  • Micron Technology, Inc.: Goldman Sachs maintains its neutral recommendation and raises the target price from USD 400 to USD 900.
  • Okta, Inc.: UBS maintains its buy recommendation and raises the target price from USD 115 to USD 150.
  • Sandisk Corporation: Mizuho Securities maintains its outperform rating and raises the target price from USD 1825 to USD 2200.
  • Venture Global, Inc.: TPH&Co. maintains its hold recommendation and raises the target price from USD 8 to USD 17.