Futures for major U.S. indices moved higher on Tuesday, indicating a possible rebound after the previous session was weighed down by renewed tensions around the Strait of Hormuz. Investor sentiment had been rattled by fresh attacks, while uncertainty continues to surround the durability of the fragile ceasefire between the United States and Iran.
Washington is pressing ahead with efforts to reopen the key shipping route, while attention also turns to corporate earnings, including results from chipmaker Advanced Micro Devices Inc. (NASDAQ:AMD), due after the close. At the same time, Apple Inc. (NASDAQ:AAPL) is reportedly exploring ways to broaden its semiconductor supply base.
Futures Point to Gains
At 03:34 ET, Dow futures were up 131 points, or 0.3%, while S&P 500 futures gained 19 points, also 0.3%. Nasdaq 100 futures advanced 112 points, or 0.4%.
Wall Street had declined in the prior session as hostilities in the Gulf region intensified. Oil prices climbed back above $110 per barrel, as the U.S. stepped up attempts to reopen the largely blocked Strait of Hormuz.
Energy stocks benefited from the rise in crude, while logistics names came under pressure. FedEx Corporation (NYSE:FDX) and United Parcel Service Inc. (NYSE:UPS) both fell after Amazon.com Inc. (NASDAQ:AMZN) introduced a new offering expected to intensify competition in deliveries.
Rising Tensions Threaten Truce
New attacks were reported on Monday, with Tehran responding to U.S. President Donald Trump’s push to reopen maritime traffic through the Strait of Hormuz, a crucial passage for roughly 20% of global oil supplies.
Several merchant vessels in the Gulf reported fires or explosions. The U.S. said it had escorted two American-flagged ships through the strait while fending off attacks from Iranian drones and small armed boats.
The unrest also appeared to spread further across the Middle East. In the United Arab Emirates, air defence systems intercepted missiles and drones launched from Iran, while an oil facility in Fujairah was targeted.
Trump has shared limited details on the plan to reopen the route, known as “Project Freedom,” while Iran’s foreign minister cautioned that the U.S. risks becoming trapped in a “quagmire.”
Oil Stays Elevated
For much of the conflict, now stretching beyond two months, tanker traffic through the Strait of Hormuz has been heavily restricted due to the threat of Iranian attacks. This has pushed oil prices higher and heightened concerns over inflation and its potential impact on global growth.
Still, some signs suggest U.S. efforts to escort vessels could be easing pressure in the region. Shipping group A.P. Moller-Maersk A/S said a U.S.-flagged vehicle carrier operated by one of its subsidiaries had successfully exited the Gulf with military support.
Brent crude slipped 0.8% to $113.56 per barrel but remains well above levels seen before the conflict.
AMD Earnings in Focus
Investors are closely watching results from Advanced Micro Devices, which are due after the close. The update is expected to shed light on the company’s progress in challenging AI chip leader Nvidia.
Earlier this year, AMD forecast first-quarter revenue of about $9.8 billion, plus or minus $300 million, slightly down from $10.27 billion in the previous quarter. The cautious outlook came despite improved sales in China, highlighting ongoing competitive pressures.
Elsewhere, Palantir Technologies Inc. (NASDAQ:PLTR) beat quarterly expectations and raised its revenue forecast, though its shares declined in extended trading after finance chief David Glazer indicated costs are set to rise in 2026.
Overall, the earnings season has offered some reassurance to investors unsettled by geopolitical risks, driven largely by strong performance from AI-related companies. S&P 500 firms are expected to report aggregate profit growth of around 28% year-on-year for the first quarter, well above initial projections.
Apple Looks to Diversify Chip Supply
Apple Inc. (NASDAQ:AAPL) has reportedly held early-stage discussions with Intel Corporation (NASDAQ:INTC) and Samsung Electronics Co. Ltd. (USOTC:SSHNZ) about manufacturing processors for its devices, according to Bloomberg.
The talks reflect Apple’s effort to reduce dependence on long-time partner Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which currently produces its custom chips.
While discussions remain preliminary and no decisions have been finalised, any change would mark a notable shift in Apple’s supply chain strategy.
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