US stock futures rose for the second straight session on Tuesday, 9 June, as a continued recovery in chip stocks supported Wall Street, while easing Israel-Iran tensions helped cool crude oil prices.
S&P 500 futures gained 0.4%, while Nasdaq 100 futures climbed 0.8%, pointing to further strength in technology stocks after last week’s pullback. Futures tied to the Dow Jones Industrial Average also advanced 0.2%.
In the Middle East, tensions eased after Iran’s military reportedly said it would halt offensive operations following an appeal from US President Donald Trump. However, it warned that harsher attacks could follow if Israel resumed strikes on Lebanon.
Trump also renewed claims that a peace deal with Tehran is nearing completion. Regional tensions had escalated on Monday after Israel and Iran exchanged fire in their first direct attacks since the US brokered a ceasefire with Tehran two months ago.
The back-and-forth over de-escalation hopes in the region has kept crude oil prices elevated. However, a sharp rally in semiconductor stocks helped major US indices scale multiple record highs, with the positive sentiment spilling over to key Asian markets.
Meanwhile, the IPO of SpaceX, which received a strong response from investors, is expected to debut on the Nasdaq on June 12 under the ticker symbol SPCX. Shares are reportedly priced at $135 each, valuing the company at around $1.77 trillion.
Separately, OpenAI has confidentially filed for a US initial public offering, joining rival Anthropic in moving towards public markets.
“For now, the market narrative remains centred on artificial intelligence. While concerns about valuations, inflation, and monetary policy persist, investors continue to view pullbacks in AI-related stocks as buying opportunities rather than signs of a broader trend reversal,” said domestic brokerage firm Vested Finance.
On the economic front, investors are awaiting the US Consumer Price Index (CPI) data on Wednesday and Producer Price Index (PPI) data on Thursday for further clues on the Federal Reserve’s interest rate trajectory.
The US jobs report for May came in stronger than expected, fuelling expectations that the Federal Reserve could raise interest rates again by the end of the year. The stronger jobs report comes at a time when inflation remains well above the US Federal Reserve’s target.
Crude oil prices retreat
Crude oil prices drifted lower as easing tensions in the Middle East raised hopes that shipping flows through the Strait of Hormuz could return to normal.
Brent crude futures slipped back to around $93 per barrel after surrendering most of the previous session’s gains. US crude futures also dropped below $90 per barrel to around $89 after giving up a majority of their gains from the previous trading session.
This is not the first time the US has indicated that tensions in the region could ease soon. Earlier as well, Washington had suggested the conflict may de-escalate, only to later warn that attacks could intensify if Iran refused to abandon its nuclear ambitions.
Since the conflict escalated in late February, the Strait of Hormuz has effectively remained shut. A full reopening of the waterway would provide significant relief to major Asian economies and could push oil prices substantially lower, considering the route carries roughly one-fifth of global oil and LNG shipments.
US stocks in focus today
Micron Technology advanced for the second straight session, gaining 4% in pre-market trade after staging a 10% rebound on Monday. Qualcomm was also up 3% in early trading, extending gains for a second day after tumbling 11% on Friday.
Nuvalent surged 39% after UK-based biopharmaceutical company GSK announced an agreement to acquire the company for $10.6 billion.
Meanwhile, The J.M. Smucker Company gained 3.5% after reporting better-than-expected fiscal fourth-quarter results. On the other hand, SailPoint tumbled 12% after issuing weak guidance.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
