U.S. stock index futures indicate a higher opening for markets on Tuesday, suggesting equities may continue the recovery seen in the previous session.
The positive tone comes as investors try to look past recent volatility in crude oil prices tied to the intensifying conflict in the Middle East.
Crude oil for April delivery is currently climbing more than 2 percent after falling by over 5 percent during Monday’s trading session.
The latest surge in oil prices follows a series of Iranian strikes on the United Arab Emirates, reportedly targeting Dubai International Airport and the Fujairah oil port in what marks a significant escalation in the conflict.
A drone attack triggered a fire at the Fujairah Oil Industry Zone in the UAE, though reports indicate no casualties. The facility is located about 93 miles east of Dubai.
Explosions and air defense activity were reported across the UAE, Saudi Arabia and Qatar as the U.S.-Israel conflict with Iran entered its 18th day.
The Israeli military said it had launched a “wide-scale wave of strikes” targeting areas across Iran’s capital while also intensifying attacks on Iran-backed Hezbollah positions in Lebanon.
At the same time, several U.S. allies—including Germany, Spain, Italy, Australia and Japan—have declined President Donald Trump’s request to help secure the Strait of Hormuz, a key route for roughly one-fifth of the world’s energy shipments.
After declining in recent sessions, U.S. stocks staged a notable rebound on Monday. All three major indexes closed higher, with technology stocks leading the advance.
Although the indexes finished below their intraday highs, they still recorded strong gains. The Nasdaq jumped 268.82 points, or 1.2 percent, to 22,374.18, the S&P 500 rose 67.19 points, or 1.0 percent, to 6,699.38, and the Dow Jones Industrial Average climbed 387.94 points, or 0.8 percent, to 46,946.41.
Monday’s rally came alongside a sharp drop in oil prices, with crude for April delivery plunging nearly 5 percent after having surged 8.6 percent the previous week.
Oil pulled back after President Donald Trump urged other nations to contribute to securing the Strait of Hormuz.
“I’m demanding that these countries come in and protect their own territory, because it is their territory. It’s the place from which they get their energy,” Trump told reporters aboard Air Force One on Sunday. “And they should come and they should help us protect it.”
“Why are we maintaining the Hormuz Strait when it’s really there for China and many other countries?” he asked. “Why aren’t they doing it?”
The decline in oil prices helped ease some concerns about inflation, although the Federal Reserve is still widely expected to keep interest rates unchanged at its upcoming policy meeting.
Value-focused buying may also have supported the market rebound after the major indexes closed at their lowest levels in more than three months last Friday.
In economic news, a report from the Federal Reserve showed U.S. industrial production rose slightly more than expected in February.
The Fed said industrial production increased 0.2 percent in February after rising 0.7 percent in January. Economists had forecast a smaller gain of 0.1 percent.
Computer hardware stocks were among the strongest performers, with the NYSE Arca Computer Hardware Index climbing 2.6 percent.
Networking and semiconductor stocks also posted solid gains, contributing to the broader advance in the technology-heavy Nasdaq.
Outside the tech sector, steel stocks moved higher as well, pushing the NYSE Arca Steel Index up 1.7 percent.
Airline, brokerage and housing stocks also advanced, joining most other major sectors in moving higher.