US equity futures edged higher on Tuesday, extending their rebound as the technology sector stabilized and inflation concerns eased. Futures on the S&P 500 and Nasdaq 100 posted modest gains, while the Dow Jones Industrial Average was poised to notch another record high around 52,250.
AI-related stocks largely recovered from last week’s selloff, signaling that investors have reembraced the long AI trade. This renewed appetite was underpinned by strong guidance from chipmakers, even as hyperscalers’ elevated capital spending remains a concern. Nvidia, AMD, and Intel were each up as much as 1% in premarket trading.
At the same time, oil prices consolidated near their pre-war levels, helping to lower expectations that the Federal Reserve will be forced into a renewed rate-hike cycle. The improved macro backdrop has supported more traditional, cyclically exposed sectors that carry a heavier weight in the Dow, helping the index outperform its peers in June.
Overall, the S&P 500 was on track to advance about 14% in the second quarter, its strongest quarterly performance in six years.
