US stock futures were largely flat in Tuesday’s trade, September 22, as the rally in chip stocks showed signs of losing momentum, with investors shifting their focus towards diplomatic efforts to end the US-Iran conflict.
S&P 500 futures were little changed after a rally in technology giants and chipmakers pushed the index to a one-month high. On Monday, the index jumped 1.5%, closing just 0.4% below its record high set last month.
Dow Jones Industrial Average futures rose 112 points, or 0.2%, while Nasdaq-100 futures advanced 0.1% after the tech-heavy index surged 2.3% in the previous session to a record high, driven by an 11.3% jump in Meta as analysts pointed to its Muse AI agent garnering more downloads in its first 13 days than ChatGPT.
AI-linked stocks have been among the biggest drivers of the market in 2026, helping major indices reach multiple record highs despite ongoing geopolitical tensions. The rally pushed Advanced Micro Devices above the $1 trillion market capitalisation mark in the previous session, with its shares up more than 180% so far in 2026.
More recently, Wall Street has also received support from a sustained decline in crude oil prices and a modest retreat in Treasury yields.
Monday’s decline in oil prices further eased pressure from the bond market. The yield on the 10-year US Treasury fell to 4.95% from 5.01% late Friday, after crossing above the 5% threshold last week for the first time since 2023.
Global investors are also gearing up for a summit between US President Donald Trump and Chinese President Xi Jinping later this week. Officials from the two countries concluded their second day of talks in New York on Monday, seeking to advance negotiations ahead of Xi’s visit to the US.
Crude oil extends losses
Crude oil prices remained at losses for the fifth trading session on Tuesday after reports that Iran had offered to reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade of Iranian ports.
The development raised hopes of fewer disruptions along a key global oil shipping route.
Brent crude erased gains of as much as 2.5% to trade at $97.8 per barrel, its lowest level in two weeks.
Iran has offered to reopen the Strait of Hormuz within seven days if the US takes initial steps toward easing military pressure, a senior Iranian government official told Kyodo News on Tuesday, as part of Tehran’s ramped-up efforts to revive negotiations with Washington, Reuters reported.
The development came amid reports that US President Donald Trump was open to meeting Iranian President Masoud Pezeshkian, who is in New York for the UN General Assembly.
The US-Iran conflict has driven crude prices sharply higher this year, adding to inflationary pressures globally and complicating the outlook for central banks. The Federal Reserve and other major central banks have been closely monitoring the impact of energy prices on inflation and interest-rate policy.
US stocks in focus
Chip stocks rallied on Monday, with Intel and Arm Holdings surging more than 12%, while the PHLX Semiconductor Index jumped 4.3%. Investors pointed to signs that AI spending remains strong, despite recent warnings from leaders of major AI companies last week that had triggered a global technology sell-off.
In premarket trading, Meta added 0.5%, while Alphabet climbed 0.8%, Amazon edged up 0.6% and Microsoft gained 0.4%. On the flip side, some of the chip stocks that have been the biggest beneficiaries of the AI trade this year moved lower, with Nvidia easing 0.2% and US-listed shares of TSMC and SK Hynix losing more than 1% each.
(With inputs from agencies)
(Disclaimer: We advise investors to check with certified experts before making any investment decisions.
