US Stocks Hold Steady Amid Diplomatic Efforts and Crude Oil Price Decline
US stock futures held steady on Tuesday as investors shifted their focus from chip stocks to diplomatic efforts to end the US-Iran conflict. The S&P 500 futures were little changed, while the Dow Jones Industrial Average futures rose 112 points or 0.2%. The Nasdaq-100 futures advanced 0.1% after the tech-heavy index surged to a record high on Monday.
The rally in chip stocks showed signs of losing momentum, with investors shifting their focus towards diplomatic efforts to end the US-Iran conflict. AI-linked stocks have been among the biggest drivers of the market this year, helping major indices reach multiple record highs despite ongoing geopolitical tensions.
Crude oil prices continued to extend losses for the fifth trading session on Tuesday after reports that Iran had offered to reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade of Iranian ports. The development raised hopes of fewer disruptions along a key global oil shipping route.
The yield on the 10-year US Treasury fell to 4.95% from 5.01% late Friday, after crossing above the 5% threshold last week for the first time since 2023. Global investors are also gearing up for a summit between US President Donald Trump and Chinese President Xi Jinping later this week.