Dow Jones futures shift into green as Iran reciprocal strikes continue

• WTI crude oil reached $95.60 per barrel as the Strait of Hormuz remains blocked, cutting off approximately 20% of global oil and LNG supply in the conflict's third week
• Dow Jones futures rose 0.3% after previously being down 0.5-0.6%, with tech sentiment supported by Nvidia CEO's prediction that demand for new chips could reach $1 trillion
• President Trump demanded European nations defend the Strait after rebuffing UK assistance, but was refused as allies argue the US started the conflict and should resolve it

Market Summary: Dow Jones Futures Rise Amid Middle East Tensions and Fed Meeting

Market Performance:

US futures turned positive on Tuesday morning, with Dow Jones futures up 0.3% and S&P 500 and Nasdaq futures rising 0.2%, reversing earlier declines of 0.5-0.6%. On Monday, major indexes posted strong gains: the Nasdaq climbed 269 points (1.2%) to 22,374, the S&P 500 added 1% to 6,699, and the Dow Jones rose 388 points (0.8%) to 46,946.

Geopolitical Developments:

Escalating conflict between the US/Israel and Iran entered its third week, with multiple incidents reported: a drone strike on the UAE's Shah oil and gas field, an attack on a tanker near Fujairah port, and drone strikes in Baghdad including targeting the US embassy. Israel reportedly killed or injured Iranian national security chief Ali Larijani. The Strait of Hormuz remains blocked, disrupting approximately 20% of global oil and LNG supplies.

Energy Impact:

WTI crude oil prices remained elevated at $95.60 per barrel as Middle East tensions supported energy markets. President Trump demanded European nations defend the Strait, but faced rejection as international partners argued the US initiated the conflict.

Tech Sector Strength:

Technology stocks showed resilience, supported by AI optimism. Nvidia CEO Jensen Huang projected demand for new chips could reach $1 trillion at the company's GTC developer conference.

Upcoming Events:

• Federal Reserve begins two-day policy meeting
• Earnings reports from Lululemon, DocuSign, and Oklo
• Wholesale inflation data and Fed policy decision expected Wednesday

Market Outlook:

Analyst David Morrison warned "risk-off" sentiment will likely persist while the Strait of Hormuz remains blocked, despite overall market resilience.