US stock futures decline slightly, after Wall Street rebounded earlier on gains in technology stocks and a decline in oil prices

Investing.com - U.S. stock index futures edged lower Monday evening, after Wall Street rebounded sharply during regular trading hours, led by tech stocks, while oil prices retreated slightly due to uncertainties surrounding Middle East conflicts.

As of 20:24 Eastern Time (00:24 Beijing Time), S&P 500 futures fell 0.2% to 6,745.0, Nasdaq 100 futures declined 0.2% to 24,844.0. Dow futures also dropped 0.2% to 47,207.0.

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Wall Street rebounds on tech rally and Nvidia optimism

On Monday, the three major indices closed sharply higher, supported by a tech rebound and falling oil prices.

The Dow Jones Industrial Average rose 0.8%, the S&P 500 gained 1.0%, and the Nasdaq Composite climbed 1.2%.

Tech stocks led the rally, with chip manufacturers rising after Nvidia (NASDAQ: NVDA) announced new products at its annual developer conference.

Nvidia’s stock price increased after CEO Jensen Huang said he expects Nvidia’s Blackwell and Vera Rubin systems to secure $1 trillion in orders by 2027.

Energy prices also supported the market, with oil retreating from recent highs. Oil prices fell on Monday after soaring since tensions between Israel and Iran escalated.

However, with the Middle East conflict entering its third week, investors remain cautious amid threats to shipping routes and energy infrastructure, particularly the threat to supply through the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.

U.S. President Donald Trump said Monday that discussions are ongoing about organizing a coalition to escort oil tankers through the strait, but no final decision has been made.

Federal Reserve decision imminent, inflation risks in focus

Investors are now awaiting the Federal Reserve’s policy decision, scheduled for Wednesday.

The market widely expects the central bank to hold interest rates steady as policymakers assess the impact of rising oil prices and geopolitical tensions on inflation and economic growth.

Market participants will also closely watch updated economic forecasts and Fed Chair Jerome Powell’s comments for signals on potential rate cuts later this year.

Corporate earnings will also be in focus, with Lululemon (NASDAQ: LULU) and DocuSign (NASDAQ: DOCU) set to report quarterly results on Tuesday.

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