U.S.-Iran Ceasefire Under Pressure; AMD Earnings in Focus: Dow Jones, S&P, Nasdaq, Wall Street Futures

Futures tied to major U.S. indices edged higher on Tuesday, pointing to a potential rebound after the previous session was hit by renewed tensions around the Strait of Hormuz. Investor sentiment had been shaken by fresh attacks, as uncertainty persists over the stability of the fragile ceasefire between the U.S. and Iran.

Washington continues efforts to reopen the strategically vital shipping route, while markets also turn attention to upcoming corporate results, including chipmaker Advanced Micro Devices Inc. (NASDAQ:AMD), which is set to report after the close. Meanwhile, Apple Inc. (NASDAQ:AAPL) is reportedly exploring ways to diversify its semiconductor supply chain.

Futures Signal Market Recovery

As of 03:34 ET, Dow futures were up 131 points, or 0.3%, while S&P 500 futures gained 19 points, also 0.3%. Nasdaq 100 futures rose 112 points, or 0.4%.

Wall Street had declined in the prior session, weighed down by escalating hostilities in the Gulf region. Oil prices surged back above $110 per barrel, as the U.S. intensified efforts to reopen the largely blocked Strait of Hormuz.

Energy stocks benefited from the rise in crude prices, but transport names came under pressure. FedEx Corporation (NYSE:FDX) and United Parcel Service Inc. (NYSE:UPS) both dropped after Amazon.com Inc. (NASDAQ:AMZN) unveiled a new service expected to heighten competition in the delivery sector.

Escalation Raises Concerns Over Ceasefire

Fresh attacks were reported on Monday, with Tehran responding to U.S. President Donald Trump’s push to reopen shipping lanes through the Strait of Hormuz, a route responsible for roughly 20% of global oil flows.

Several merchant vessels in the Gulf reported fires or explosions. The U.S. said it had successfully escorted two American-flagged ships through the strait while repelling attacks from Iranian drones and small armed boats.

The situation also appeared to widen across the Middle East. In the United Arab Emirates, air defence systems intercepted missiles and drones launched from Iran, while an oil terminal in Fujairah was targeted.

Trump has offered limited details about the plan to reopen the waterway, referred to as “Project Freedom,” while Iran’s foreign minister warned that the U.S. risks becoming entangled in a “quagmire.”

Oil Prices Remain Elevated

For much of the conflict, which has now lasted more than two months, tanker traffic through the Strait of Hormuz has been heavily restricted due to the threat of Iranian strikes. This has pushed oil prices higher and raised concerns about inflation and global economic growth.

However, some signs suggest the U.S. effort to escort vessels may be easing pressure in the region. Shipping group A.P. Moller-Maersk A/S indicated that a U.S.-flagged vehicle carrier operated by one of its subsidiaries successfully exited the Gulf with military support.

Brent crude slipped 0.8% to $113.56 per barrel but remains significantly above pre-conflict levels.

AMD Earnings in Spotlight

Investors are closely watching results from Advanced Micro Devices, which will report after markets close. The update is expected to provide insight into the company’s efforts to compete with AI chip leader Nvidia.

Earlier this year, AMD forecast first-quarter revenue of around $9.8 billion, plus or minus $300 million, down slightly from $10.27 billion in the previous quarter. The cautious outlook came despite improved sales to China, highlighting ongoing competitive pressures.

Elsewhere, Palantir Technologies Inc. (NASDAQ:PLTR) exceeded quarterly expectations and raised its revenue forecast. However, its shares fell in extended trading after finance chief David Glazer indicated that costs are expected to rise in 2026.

Overall, the earnings season has offered some reassurance to investors unsettled by geopolitical risks, with strong results from AI-focused companies. Firms in the S&P 500 are projected to deliver combined profit growth of around 28% year-on-year for the first quarter, significantly above early expectations.

Apple Explores Chip Supply Options

Apple Inc. (NASDAQ:AAPL) has reportedly held preliminary discussions with Intel Corporation (NASDAQ:INTC) and Samsung Electronics Co. Ltd. (USOTC:SSHNZ) about producing processors for its devices, according to Bloomberg.

The talks reflect Apple’s effort to reduce reliance on long-time partner Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which currently produces its custom chips.

Discussions remain at an early stage, with no final decisions taken, but any shift would mark a notable change in Apple’s supply chain strategy.

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