United States equity futures traded modestly lower on Monday night (Tuesday AEST) after a rally in semiconductor stocks helped lift Wall Street during the regular session.
At 10:10 am AEST (12:10 am GMT), futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq were all down 0.1%.
The cautious moves followed a stronger session for technology shares, with chipmakers leading gains across major indices. The S&P 500 rose 0.3%, while the technology-heavy Nasdaq Composite advanced 0.9%, recovering some of the losses recorded during last week's sharp sell-off in the sector.
The Dow Jones Industrial Average underperformed, slipping 0.2% as investors rotated into growth-oriented technology names.
Semiconductor stocks were among the strongest performers as traders sought bargains after concerns over elevated valuations and interest rate expectations triggered a broad technology retreat last week.
Investors continued to monitor developments in the Middle East as uncertainty surrounding a fragile ceasefire between Iran and Israel weighed on sentiment.
Reports over the weekend indicated that Iran launched a missile attack. However, signs of possible de-escalation emerged later in the day as U.S. President Donald Trump said in a post on Truth Social that Israel and Iran "are looking to do an immediate ceasefire."
Tehran's Ministry of Foreign Affairs subsequently told CNBC that Iran's military had halted strikes against Israel but warned that military action would resume if Israel continued operations in Lebanon.
The developments have left investors balancing geopolitical risks against optimism that a broader ceasefire agreement could reduce pressure on energy markets and inflation expectations.
Market participants are also preparing for a busy economic calendar and another batch of corporate earnings reports.
Before Tuesday's opening bell, investors will receive results from United Natural Foods, J.M. Smucker, Designer Brands and Lands' End.
On the economic front, traders will be watching April wholesale inventory data, along with May readings for existing home sales and the National Federation of Independent Business (NFIB) Small Business Optimism Index.
