Wall Street Futures Steady as AI Rally Offsets Middle East Tensions

U.S. stock futures traded mostly unchanged Tuesday night after a technology-driven rally pushed the S&P 500 and Nasdaq to fresh record highs. However, renewed U.S. military action involving Iran continued to weigh on investor sentiment and raised concerns about escalating geopolitical risks in the Middle East.

S&P 500 Futures held near 7,539, while Nasdaq 100 Futures remained steady around 30,082. Dow Jones Futures gained slightly by 0.1% in late trading. During Tuesday’s regular session, the S&P 500 advanced 0.5% to close at another all-time high, while the Nasdaq Composite climbed 0.9% as semiconductor and artificial intelligence stocks fueled market momentum. In contrast, the Dow Jones Industrial Average slipped 0.3%.

Technology shares remained the market’s strongest driver, with chipmakers leading gains across Wall Street. Micron Technology surged sharply after receiving a bullish analyst upgrade, helping lift the Philadelphia Semiconductor Index to a record level. The rally also pushed Micron’s market capitalization above the $1 trillion mark for the first time, highlighting continued investor enthusiasm surrounding AI-related growth stocks.

Despite strong equity performance, geopolitical uncertainty limited broader market optimism. Reports of new U.S. strikes on Iranian vessels near the Strait of Hormuz increased fears that ongoing diplomatic discussions between Washington and Tehran could collapse. Iran criticized the attacks as violations of the ceasefire agreement, while U.S. officials defended the military response as necessary for regional security.

Meanwhile, Israel reportedly launched more than 120 airstrikes on Lebanon, adding further pressure to already fragile regional negotiations. Oil prices remained volatile as traders monitored potential disruptions to global crude supply routes.

Treasury yields moved lower as investors sought safer assets ahead of key economic data releases. The benchmark 10-year Treasury yield fell to approximately 4.49%. Markets are now closely watching the upcoming U.S. Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation indicator, for signals on future interest rate decisions in 2026.