Dow Futures show an uptick, indicating a potential recovery in equities following reports of new attacks in the Strait of Hormuz that negatively impacted sentiment in the previous session. The path of a tenuous ceasefire between the U.S. and Iran remains unclear as Washington seeks to leverage its military capabilities to access the obstructed waterway. The chipmaker is set to disclose its most recent financial results following the market close, while it is reportedly considering a strategy to broaden its supply sources for essential chips.

Dow futures indicated an upward trajectory on Tuesday, as investors monitored escalating tensions in the Middle East while anticipating significant economic data to be released later this week. At 03:34, the contract experienced an increase of 131 points, representing a 0.3% rise, while futures advanced by 19 points, also a 0.3% gain, and another measure saw an uptick of 112 points, equating to a 0.4% increase. The principal indices on Wall Street experienced a decline in the previous session, influenced by the recent military actions undertaken by the U.S. and Iran in the Gulf region, which pose a risk to the tenuous ceasefire in place. Oil prices have risen above $110 a barrel, despite the U.S. intensifying its attempts to reopen the largely closed Strait of Hormuz. Energy stocks experienced a rally following the increase in crude prices; however, both subsequently declined after it was announced that a new offering would heighten competition with delivery firms.

On Monday, the U.S. and Iran engaged in a series of attacks, with Tehran reacting to President Donald Trump’s initiative to restore shipping through the Strait of Hormuz, a crucial passageway for approximately one-fifth of global oil supplies. Numerous merchant vessels operating in the Gulf region have reported incidents of fires or explosions. The U.S. asserted that it had effectively facilitated the passage of two American-flagged vessels through the strait while repelling assaults from Iranian drones and armed small boats. The conflict exhibited signs of once more extending its reach across the Middle East. In the United Arab Emirates, air defense systems were activated in response to ballistic missiles and drones that were launched from Iran. An oil terminal located in the city of Fujairah has also been subjected to an attack. Trump, under mounting pressure from certain U.S. lawmakers regarding the conflict, has provided scant details about his initiative to reopen the conduit, referred to as “Project Freedom.” Meanwhile, Iran’s foreign minister has cautioned the U.S. against becoming entangled in a “quagmire.”

Throughout the duration of the conflict, which has now surpassed two months, the Strait of Hormuz has been largely inaccessible to tanker traffic owing to the looming threat of Iranian strikes. Oil prices have surged, raising concerns about a potential inflationary spike that may hinder global growth. Traders observed signs that the U.S. initiative to escort certain vessels through the strait might be diminishing Iran’s control over the region. Highlighting this perspective was a declaration from shipping behemoth Maersk, which indicated that a U.S.-flagged vehicle carrier managed by one of its subsidiaries had departed the Gulf through the strait with the aid of American military support. The global oil benchmark recently decreased by 0.8% to $113.56 a barrel, yet it continues to be significantly elevated compared to pre-war levels.

Advanced Micro Devices is poised to take center stage on the earnings calendar following the conclusion of U.S. markets today, as investors are eager to assess the chipmaker’s advancements in its competition against the formidable artificial intelligence semiconductor leader, Nvidia. In February, AMD indicated that revenue is expected to decline modestly in the first quarter to approximately $9.8 billion, with a variance of plus or minus $300 million, relative to $10.27 billion in the prior three-month period. The pessimistic forecast emerged despite AMD experiencing a resurgence in sales to China, highlighting the challenges the company encounters in its competition with Nvidia. In other developments, data analytics not only surpassed quarterly estimates but also raised its revenue forecast. However, shares experienced a decline in after-hours trading as finance chief David Glazer indicated that the group’s expenses are expected to rise in 2026. Earnings season has emerged as a beacon of optimism for investors concerned about the ramifications of the Iran war, largely propelled by AI-linked hyperscalers. Aggregate profit growth for S&P 500 companies in the first quarter is projected at 28% compared to the previous year, significantly exceeding initial expectations set at the start of the reporting period in early April.

Apple Inc has engaged in preliminary discussions with Intel regarding the potential production of processors for its devices, as reported on Tuesday, referencing sources familiar with the situation. The decision reflects the iPhone maker’s intention to broaden its partnerships beyond its longstanding collaborator, according to the report. The discussions are in preliminary phases and indicate Apple’s initiative to diminish dependence on a sole supplier for its custom chips that drive iPhones, iPads, and Macs, as reported. Apple has initiated discussions with Intel regarding the potential utilization of its foundry services, while executives from the company have also toured Samsung’s new chip manufacturing facility currently under construction in Texas, according to the report. Any shift would signify a notable alteration in Apple’s supply chain strategy; however, the report indicated that no final decisions have been reached.