Nvidia and Tech Stocks Bounce Back as Investors Await Inflation Data

US stock index futures are edging higher on Tuesday as technology stocks recover from sharp declines in the previous session. The S&P 500 and Nasdaq fell after a selloff in semiconductor shares, with investors weighing AI-driven growth against lofty valuations.

Megacaps like Nvidia, up 1.3%, and Meta, gaining 1%, are leading the gains in premarket trading. Memory chipmaker Micron added 2.3%, while data-storage companies Western Digital and Sandisk rose 2.7% and 3%, respectively.

Markets have largely shrugged off a US threat to countries continuing to trade with Iran, which could be forced out of the dollar-based finance system. Economist Mohit Kumar at Jefferies said this plan is meant to bring Iran to the negotiating table, rather than an escalation.

Investors are awaiting key inflation data and Nvidia's quarterly report, due Wednesday after markets close. The AI chip giant is expected to show robust AI-driven demand, but any signs of slowing growth could reignite concerns over stretched valuations.