S&P futures exhibited minimal fluctuations early Tuesday, following a rally propelled by equities associated with artificial intelligence. S&P 500 futures traded just above the flatline, while Nasdaq-100 futures advanced 0.1%. Futures for the Dow Jones Industrial Average increased by 112 points, reflecting a 0.2% rise. U.S. futures reduced their earlier declines following a report from Japanese wire service Kyodo, which stated that Iran had proposed to reopen the Strait of Hormuz within a week, resulting in a decrease in crude oil prices. Brent futures experienced a decline of 2%, trading at $98.22 per barrel. U.S. crude experienced a decline of 2.6%, trading at $93.28. Tuesday’s movements come in the wake of a robust session on Wall Street.

The S&P 500 experienced an increase of 1.5%, marking its most significant daily gain since August 4. Meanwhile, the Nasdaq Composite surged by 2.3%, achieving its first closing record since June. The Dow Industrials experienced an increase of 366 points, representing a rise of 0.7%. A decline in oil prices fuelled the stock market’s gains, while Treasury yields pulled back as well. Even before the Federal Reserve’s decision to increase its key interest rate by a quarter point last week, Treasury yields have been on an upward trajectory as the economy grapples with escalating debt, high oil prices, and persistent inflation. Traders are poised to focus on the upcoming summit in Washington, DC, where President Donald Trump will meet with Chinese leader Xi Jinping.

Artificial intelligence, the Iran war, tariffs, and rare earth metals are anticipated to be central themes discussed during the meeting. Treasury Secretary Scott Bessent convened with Chinese Vise Premier He Lifeng prior to Xi’s visit to the U.S. As Tuesday approaches, market participants will be attentive to the Richmond Fed’s manufacturing survey, alongside addresses from New York Fed President John Williams and Richmond Fed President Tom Barkin.