US stock futures post a modest rebound, escalating tensions in the Middle East lift oil prices, and the AI sector underpins strength in tech stocks.

US stock index futures edged higher in pre-market trading, with S&P 500 futures up 0.2%, Nasdaq 100 futures rising 0.61%, and Dow Jones futures nearly flat. Against the backdrop of renewed escalation in US-Iran tensions and rising global oil prices, markets are betting that tech stocks will drive a rebound in US equities. Most major European stock indexes rose. Japan’s Nikkei 225 closed up 1.4%, South Korea’s KOSPI gained 0.62%, China’s A-share CSI 300 index closed 2.5% higher, while Hong Kong’s Hang Seng Index edged lower. On the news front, the US announced a new round of strikes against Iran in response to attacks on merchant vessels near the Strait of Hormuz, with WTI crude oil futures rising nearly 1% at one point. US President Donald Trump previously stated that the US-Iran ceasefire "has ended," adding that he may no longer intend to continue negotiations with Iran. Markets are concerned that persistent supply risks in the Strait of Hormuz will further push up global energy prices and geopolitical risk premiums. From an institutional perspective, Wells Fargo Investment Institute noted that if Middle East tensions escalate further, against the backdrop of low global crude oil inventories, oil prices may continue to carry high risk premiums. However, corporate earnings growth and the AI investment boom will still provide support for US equities, with the S&P 500 expected to rise to the 7,800–8,000 point range by the end of the year. Markets will also focus today on US initial jobless claims data, existing home sales figures, and PepsiCo’s earnings report.