* Futures up: Dow 0.3%, S&P 500 0.4%, Nasdaq 1.2%
* 3M ( MMM ) rises after lifting annual profit forecast
* Trump prepares fresh tariffs on dozens of countries, FT
reports
(Updates prices)
By Ragini Mathur and Avinash P
July 21 (Reuters) - U.S. stock index futures rose on
Tuesday, as semiconductor shares extended a recovery from a
recent selloff, while investors awaited major tech earnings for
clues on the future of the AI trade.
Markets also weighed mixed signals from the U.S.-Iran
conflict after a senior Iranian official told Reuters on Monday
that Tehran had received a proposal from mediators for a 10-day
ceasefire.
Yemen's Iran-aligned Houthis said on Monday they would
impose a naval blockade on Saudi Arabia, opening a potential new
front against the United States in its war with Iran and raising
the threat to global energy supplies and trade beyond the Gulf.
Brent crude futures returned to around $90 a barrel after
earlier losses.
Recently battered semiconductor stocks were leading
premarket gains. The iShares Semiconductor ETF climbed
4%, rising for the second consecutive day.
"While shipping confidence and oil production may take
longer than expected to be fully restored, we expect limited
pass-through to core inflation, keeping central banks from
tightening aggressively," said Mark Haefele, chief investment
officer at UBS Global Wealth Management.
"This means earnings growth should remain a key driver of
the equity market."
Lately, chip stocks have come under heavy pressure, as
investors question whether this year's powerful rally in the
sector has gone too far, and scrutinize the lack of tangible
returns on hefty investments by hyperscalers.
The Philadelphia SE Semiconductor Index ended Friday
more than 20% below its late-June record high, confirming a
bear-market decline, though the index remains up about 66% for
the year.
At 07:21 a.m. ET, Dow E-minis were up 155 points, or
0.3%, and S&P 500 E-minis were up 30.25 points, or 0.4%.
Nasdaq 100 E-minis were up 346 points, or 1.2%.
Recent volatility in chip stocks, which later spread to
broader markets, pushed Wall Street's main indexes to three
straight sessions of losses despite an upbeat start to the
second-quarter earnings season and cooler inflation numbers.
Investor focus this week will turn to results from Alphabet
and Intel ( INTC ), which could help determine whether
the AI trade has further room to run amid elevated profit
expectations.
Adding to the uncertainty, President Donald Trump on Monday
unveiled 50% tariffs on a wide range of imports from Canada. The
U.S. administration said the move was in response to Canada's
treatment of American-made cars, alcohol and dairy goods.
The Financial Times reported that Trump is expected to
impose fresh tariffs on dozens of countries as soon as this
week, with his 10% global tariff poised to expire on Friday.
Among early movers, 3M ( MMM ) shares gained 5.4% after the
industrial giant lifted its full-year profit forecast.
Nebius ( NBIS ) rose 6.5% after Nvidia ( NVDA ) disclosed a
9.3% passive stake in the AI cloud firm.
Equifax ( EFX ) dropped 12.4% after the credit ratings firm
forecast annual profit below estimates.
(Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing
by Maju Samuel and Shinjini Ganguli)