US Stock Futures Steady Ahead of Tesla, Alphabet Earnings as Iran Conflict Keeps Markets on Edge

U.S. stock index futures traded little changed late Tuesday after Wall Street rallied on the back of a strong rebound in technology shares, while investors shifted their attention to upcoming second-quarter earnings from Tesla and Alphabet. Ongoing U.S.-Iran military tensions also remained a key driver of market sentiment, supporting oil prices and raising concerns about inflation.

As of 20:35 ET (00:35 GMT), S&P 500 Futures slipped 0.06% to 7,541.25, Nasdaq 100 Futures edged down 0.1% to 29,282.25, and Dow Jones Futures declined 0.06% to 52,409.0.

Wall Street ended Tuesday's session higher, led by a sharp recovery in semiconductor stocks after last week's losses. The Philadelphia Semiconductor Index surged 5.2%, reflecting renewed optimism across the chip sector following strong gains in Asian markets.

The Nasdaq Composite climbed 1.3%, while the S&P 500 advanced 0.9% and the Dow Jones Industrial Average gained 0.7%.

Investor focus is now firmly on earnings from Alphabet and Tesla, two of the biggest companies reporting this week. Alphabet's results will be closely analyzed for updates on its artificial intelligence investments, as the Google parent remains one of the largest AI infrastructure spenders among major technology companies.

Tesla's earnings are expected to provide fresh insight into its autonomous driving technology, robotics initiatives, and vehicle delivery trends after signs of improving sales following a prolonged slowdown.

Beyond the tech giants, investors are also awaiting quarterly results from Philip Morris, GE Vernova, and AT&T on Wednesday. Chipmakers Texas Instruments and Intel are scheduled to report later this week, with markets looking for additional signals on AI-driven semiconductor demand.

Meanwhile, geopolitical risks continued to weigh on investor sentiment as the United States and Iran exchanged military strikes for an eleventh consecutive day. President Donald Trump warned of potential attacks on Iran's nuclear infrastructure after three U.S. service members were killed over the weekend, while Tehran threatened retaliation.

The escalating conflict pushed oil prices to their highest levels in more than five weeks, fueling concerns that higher energy costs could complicate the outlook for inflation and interest rates. Investors also continued to monitor diplomatic efforts by regional mediators, although meaningful progress toward de-escalation remained limited.