U.S. equity futures are rebounding as hopes for a temporary U.S.-Iran ceasefire ease some of the pressure from oil and revive demand for semiconductor stocks. At 5:19 a.m. ET, S&P 500 futures were up 0.57%, Dow futures were up 0.36% and Nasdaq 100 futures were up 1.44%. Russell 2000 futures were approximately 0.4% higher, indicating broader participation but continued leadership from large-cap growth. The SOXX semiconductor ETF gained 3.8% premarket after the group’s recent bear-market decline.
U.S. equities finished modestly lower Monday as rising oil prices and Treasury yields erased an early semiconductor rebound. The S&P 500 declined 0.19%, the Dow fell 0.59%, the Nasdaq slipped 0.05% and the Russell 2000 lost 0.67%. Month and quarter to date, the Dow is down 0.92%, the S&P 500 is down 0.75%, the Nasdaq is down 2.69% and the Russell 2000 is down 2.71%.
Market breadth confirmed that weakness extended beyond the major indexes. Decliners led advancers by 1.70:1 on the NYSE and 1.95:1 on the Nasdaq. Exchange volume totaled 11.49 billion shares on the NYSE and 14.97 billion on the Nasdaq, excluding regional activity.
Treasury yields moved higher Monday, with the 2-year yield rising 3 basis points to 4.21%, the 10-year increasing 5 basis points to 4.59% and the 30-year climbing 5 basis points to 5.11%. The 2-year yield eased toward 4.20% Tuesday morning as oil retreated from its overnight highs, although money markets continue to price at least one additional Fed increase this year.
The DXY rose to 100.96 Monday. The euro weakened to $1.1418, sterling slipped to $1.3435 and the dollar strengthened slightly to ¥162.50. Early Tuesday, the euro remained near $1.142 and the yen hovered close to 40-year lows around ¥162.7 per dollar. August WTI crude gained 0.59% Monday to $82.98. Oil remained near one-month highs Tuesday as investors balanced a proposed 10-day ceasefire with continuing attacks and threats to shipping routes.
The Conference Board’s Leading Economic Index declined 0.2% in June to 99.1, partially reversing gains from the prior two months. The index fell only 0.3% during the first half of 2026, an improvement from its 1.1% contraction during the second half of 2025. Tuesday’s calendar is light, with second-quarter usual weekly earnings and June state employment data scheduled for 10:00 a.m. ET.
Earnings remain the principal market catalyst. Investors are awaiting results from Alphabet (GOOGL) and Intel (INTC) later this week to determine whether AI spending and semiconductor demand can support elevated profit expectations. LSEG estimates call for S&P 500 second-quarter earnings growth of approximately 26% year over year.
Sector highlights.
Sector leadership remained narrow. Communication Services gained 0.74%, Energy rose 0.55% and Technology added 0.10%. The remaining sectors declined, led by Health Care -1.15%, Materials -0.94%, Industrials -0.77%, Consumer Staples -0.54% and Utilities -0.53%. Real Estate fell 0.45%, while Financials and Consumer Discretionary each lost 0.39%.
Information Technology
- Nebius Group (NBIS +7.7% premarket) rallied after Nvidia (NVDA) disclosed a 9.3% passive stake in the AI-cloud company.
- Semiconductor shares rebounded broadly, with the SOXX ETF up 3.8% premarket, after the Philadelphia Semiconductor Index ended Friday more than 20% below its late-June record.
- Apple (AAPL -2.0%) was Monday’s largest drag on the S&P 500, while Microsoft (MSFT) provided the largest positive contribution.
- Lumentum (LITE +7%) advanced Monday following an analyst upgrade, while memory names including Micron (MU) and SanDisk (SNDK) stabilized after last week’s sharp selloff.
Communication Services
- Alphabet (GOOGL +1.5%) gained Monday following a report that Google is developing a Gemini-integrated server chip designed to improve AI efficiency and ease computing-capacity constraints. Earnings are due Wednesday.
Financials
- Global Payments (GPN +5.8%) was the S&P 500’s strongest performer Monday after Morgan Stanley upgraded the stock to overweight and raised its price target to $100 from $65.
Consumer Discretionary
- Carvana (CVNA -4.8%) was the S&P 500’s largest percentage decliner Monday.
- Domino’s Pizza (DPZ +2.1%) advanced after quarterly revenue modestly exceeded expectations, despite weaker same-store sales and profit.
- Tesla (TSLA) reports Wednesday, with investors focused on cash burn, vehicle margins and the company’s spending on autonomous driving and robotics.
Industrials
- SpaceX (SPCX -3.3%) declined for a seventh consecutive session Monday and fell further below its post-IPO high.
