US futures rise as chip revival offsets tariff and Iran tensions
Investors weighed a resurgence in semiconductor stocks and upcoming corporate results against new 50% US tariffs on Canadian goods and escalating hostilities between Washington and Tehran.
US stock futures posted gains on Tuesday, with the Nasdaq-100 leading the advance as investors anticipated a surge in semiconductor valuations and a wave of corporate earnings. The rally served to offset lingering uncertainty surrounding fresh US trade measures and rising geopolitical tensions in the Middle East. Contracts for the Nasdaq-100 jumped 1.3%, while the S&P 500 futures rose 0.5% and the Dow Jones Industrial Average futures edged up 0.3%.
The semiconductor sector drove much of the optimism, with chip stocks reviving after a tentative recovery earlier in the week. In Asia, South Korea’s KOSPI Composite index gained more than 2%, buoyed by strength in the sector. In the US, Nvidia shares edged higher before the bell after the artificial intelligence chipmaker revealed it had taken a stake in neocloud provider Nebius.
This market resilience came despite a challenging backdrop of trade policy shifts. President Trump announced a new raft of 50% tariffs on various Canadian goods, including beer, hockey sticks, milk, and chemicals. The White House accused Canada of discrimination in its trading practices, with the measures expected to take effect in 30 days. However, Canadian oil imports were notably exempted from the new duties.
Geopolitical risks also remained a focal point, with tensions between the US and Iran escalating. Middle East hostilities pushed Brent crude prices back toward $90 per barrel, marking the highest levels since mid-June. Despite the heightened tensions, oil prices eased slightly on Tuesday morning.
Corporate earnings provided further context for the market’s direction. General Motors, Halliburton Company, and 3M Company reported results on Tuesday. Attention now turns to Big Tech earnings later in the week, particularly from Alphabet on Wednesday, as investors scrutinise the tech giants’ artificial intelligence spending plans.
