Wall Street was positioned for a modest rebound Tuesday morning as declining oil prices and renewed buying in technology stocks helped U.S. equities stabilize following Monday’s broad market selloff.
At 8:45 a.m. ET, Dow E-mini futures were up 90 points, or 0.17%, while S&P 500 futures gained 0.14% and Nasdaq-100 futures advanced 0.28%.
The improvement comes after the S&P 500 suffered its largest one-day percentage decline since late August on Monday, when geopolitical uncertainty, elevated energy prices and tighter financial conditions pressured U.S. equities.
Tuesday’s recovery remains tentative rather than a decisive reversal.
One source of relief is oil.
Brent crude futures fell more than 1% Tuesday morning as signs of improving Middle Eastern supply reduced some of the immediate pressure that drove energy markets higher.
Oil nevertheless remains elevated, meaning the inflation risk that has unsettled financial markets has not disappeared.
Technology stocks are providing another source of support.
Semiconductor shares recovered following Monday’s sector-wide weakness. Marvell Technology, Micron Technology and Broadcom each gained around 1% in premarket trading.
Nvidia advanced approximately 0.7%, extending gains after the company increased its share-repurchase authorization by a record $150 billion.
Artificial intelligence also remains an important driver of technology sentiment.
Anthropic’s newly disclosed IPO prospectus showed rapid expansion at the AI company and indicated that it is seeking a valuation above $2 trillion, providing investors with another potential benchmark for the enormous valuations attached to leading artificial-intelligence businesses.
The rebound comes at an important moment for U.S. equities.
Technology and AI-related companies have provided much of the momentum behind the market’s multiyear advance, but investors are increasingly balancing that growth against expensive valuations and a substantially higher cost of capital.
That tension makes Tuesday’s recovery significant.
If technology shares can regain momentum despite elevated interest rates and energy prices, the sector could continue providing support to the broader market. If the rebound fades, Monday’s decline may instead prove to be the beginning of a more sustained reassessment of equity valuations.
Investors are also turning their attention back toward the U.S. economy.
August job-openings data is due Tuesday, providing another indication of whether labor demand remains strong as the Federal Reserve evaluates inflation and future interest-rate policy.
At least six Federal Reserve officials are also scheduled to speak during the day, including New York Fed President John Williams.
Markets are currently pricing roughly a 70% probability of another Federal Reserve rate increase in October.
That leaves Wall Street caught between two competing forces.
Corporate earnings and artificial-intelligence investment continue supporting risk appetite, while higher energy costs and restrictive monetary conditions threaten valuations and economic growth.
Tuesday morning’s advance shows that investors are willing to buy some of Monday’s weakness.
Whether that develops into a sustained recovery will depend increasingly on what happens after the opening bell — particularly whether technology gains broaden across the market and whether oil continues retreating.
For now, Wall Street is rebounding.
But after Monday’s sharp decline, Tuesday’s early gains represent stabilization rather than an all-clear signal for U.S. markets.
