US Stock Futures Rise After Chip Selloff; Oil Steady on Hormuz Easing
US stock futures mostly rose late Tuesday as semiconductor shares rebounded, while oil prices stayed subdued amid signs of easing tensions around the Strait of Hormuz.
U.S. stock futures mostly rose late Tuesday, recovering from a selloff in semiconductor shares that weighed on Wall Street earlier in the day. Nasdaq 100 futures gained 0.7%, S&P 500 futures added 0.2%, while Dow futures edged down 0.1%. The moves came as traders assessed the outlook for chip stocks and monitored geopolitical developments. The chip selloff had been triggered by profit-taking after a strong run, but dip-buyers stepped in, lifting futures for the tech-heavy Nasdaq. Meanwhile, oil prices remained subdued after signs of easing tensions around the Strait of Hormuz, a key chokepoint for global crude shipments. Any disruption there can quickly lift fuel costs, so the relative calm helped keep energy markets steady. The Brent-WTI spread narrowed slightly, reflecting improved supply expectations, while U.S. Strategic Petroleum Reserve levels remain near 370 million barrels, providing a buffer against sudden price spikes. Live fuel prices and charts on NowPrice show how the market is reacting to these crosscurrents.
The decline in semiconductor stocks had pressured major indexes during regular trading, but futures suggested a rebound as investors looked for bargains. The broader market resilience is underpinned by expectations that the Federal Reserve may cut rates later this year, which would lower borrowing costs and support corporate profits. In energy markets, the focus remains on OPEC+ spare capacity, estimated at around 4-5 million barrels per day, which could be deployed if supply disruptions occur. However, Saudi-Russia coordination has kept production quotas tight, limiting the impact of any demand recovery from China, the world's largest crude importer. Crack spreads—the difference between crude oil and refined product prices—have narrowed, indicating that refinery margins are under pressure despite stable crude prices. This dynamic could weigh on fuel prices in the near term, as gasoline and diesel demand remains tepid in the U.S. and Europe.
Looking ahead, traders will watch for further developments in the Middle East and any fresh data on U.S. economic activity, including weekly jobless claims and manufacturing surveys. The path of interest rates and corporate earnings reports will also influence sentiment. For now, the combination of a chip-stock recovery and stable oil prices is providing a cautious tailwind for equity markets. However, the contango structure in crude futures suggests near-term oversupply, which could cap any upside in oil prices. Conversely, a shift to backwardation would signal tightening markets and potentially higher fuel costs. Investors should monitor these signals closely, as they will shape the outlook for energy stocks and broader market direction in the weeks ahead.