S&P 500, Nasdaq Futures Rise on U.S.-Iran Truce

S&P 500 and Nasdaq 100 futures advanced more than 1% in premarket trading on Tuesday, recovering some losses after tech stocks tumbled nearly 5% last week. The move followed reports of a tentative ceasefire agreement between the United States and Iran, easing fears of a broader Middle East conflict.

Possible Drivers

The rally was fueled by news of a potential truce, which reduced geopolitical risk premiums. Last week, tech-heavy indices were hit hard as investors fled risk assets amid escalating tensions. Stocks like NVIDIA (NVDA), Apple (AAPL), and Amazon (AMZN) were among the biggest decliners.

Context

The Nasdaq 100 suffered its worst weekly drop in months, falling nearly 5%, while the S&P 500 lost about 3%. The futures rebound suggests cautious optimism, but markets remain sensitive to any developments in the region.

Sector Moves

Futures for major tech stocks including NVIDIA (NVDA), Meta (META), and Alphabet (GOOGL) rose between 1% and 2%. Semiconductor stocks such as Intel (INTC), Marvell (MRVL), and Micron (MU) also saw gains, reflecting a partial return of risk appetite.

What It Means for Investors

While the futures bounce is encouraging, it may be a technical rebound after sharp losses. Investors should stay vigilant as geopolitical uncertainties persist. Any escalation could reverse gains quickly. Monitoring economic data and official statements is advised.