Nasdaq hits record close as AI stocks rally, futures steady

U.S. stock futures held steady early Tuesday after Wall Street's technology-driven rally pushed the Nasdaq Composite to its first record close since June.

The Nasdaq jumped 2.3% on Monday, while the S&P 500 climbed 1.5% for its best single-session gain since Aug. 4. The Dow Jones Industrial Average rose 366 points, or 0.7%. Heading into Tuesday's session, S&P 500 futures were barely above breakeven, Nasdaq-100 futures edged up 0.1%, and Dow futures added 112 points, or 0.2%.

Falling oil prices helped drive Monday's gains and continued to support sentiment early Tuesday. Brent crude had slipped around 2% to roughly $98 a barrel, with U.S. crude off 2.6% at $93.28. Two separate reports weighed on crude: Kyodo News Agency in Japan said Iran has offered to reopen the Strait of Hormuz in exchange for the U.S. lifting its blockade, while Reuters reported that Saudi Arabia has brought the East-West pipeline back online, a critical route that bypasses the strait. The Kyodo report cited a single source and has not been independently verified, according to CNBC .

Treasury yields also retreated, with the 10-year yield trading around 4.93%. The move higher in yields predated the Federal Reserve's quarter-point rate increase last week, reflecting broader pressure on borrowing costs from high oil prices, ballooning debt, and inflation that has refused to cool.

Tech stocks were mixed early Tuesday after an enthusiastic reception for Meta's new AI agent helped power Monday's rally, according to The Wall Street Journal .

Investors are also watching a summit in Washington between President Donald Trump and Chinese leader Xi Jinping. Discussions are anticipated to cover artificial intelligence, trade tariffs, rare earth metals, and the ongoing conflict with Iran. Before Xi reached Washington, Treasury Secretary Scott Bessent held talks with Chinese Vice Premier He Lifeng. Separately, Trump is expected to address world leaders Tuesday at the United Nations General Assembly in New York, and investors are keeping a close eye on the possibility of a sit-down between Trump and Iranian President Masoud Pezeshkian, following Trump's weekend comment that he is "probably" open to such an encounter.

Tuesday's economic calendar includes the Richmond Fed's manufacturing survey, along with scheduled remarks by New York Fed President John Williams and Richmond Fed President Tom Barkin.