Dow Jones futures edged lower by 0.02%, trading above 50,850 during European hours on Tuesday, while S&P 500 futures rose 0.21% to near 7,430 and Nasdaq 100 futures climbed 0.51% to around 29,600 ahead of the US market open [1]. The mixed performance in US stock futures follows a divergent overnight session on Wall Street, where the Dow Jones Index slipped 0.16%. In contrast, the S&P 500 gained 0.3% and the Nasdaq advanced 0.9%, driven by a strong rebound in technology stocks, particularly chipmakers. Notably, Intel surged 11.2%, Marvell Technology jumped 9.6%, and Nvidia rose 1.7% [1].
Despite the tech-led rally, overall market sentiment remains cautious due to ongoing geopolitical uncertainty in the Middle East. Iran’s military confirmed it has halted strikes against Israel, but Israeli Prime Minister Benjamin Netanyahu stated that the conflict with Iran and Hezbollah "has not yet ended." Additionally, Iran’s central military command warned that further Israeli aggression, especially in southern Lebanon, would provoke "much harsher and more crushing actions" [1].
These geopolitical tensions, combined with recent strong US jobs data, have reignited inflation concerns and shifted expectations for US Federal Reserve policy. According to the CME FedWatch tool, the probability of a December quarter-point rate hike has increased to 43%, up from 14% a month ago. Investors are now closely watching for Wednesday's Consumer Price Index (CPI) and Thursday's Producer Price Index (PPI) data to assess the Fed's next move [1].
CONCLUSION
While technology stocks have provided a lift to the S&P 500 and Nasdaq, persistent geopolitical risks and renewed inflation fears are keeping overall market sentiment cautious. Investors are focused on upcoming inflation data and shifting Fed rate hike expectations, which could further influence market direction in the near term.