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The S&P 500 and Nasdaq futures edged higher on Monday as chip stocks gained momentum, driven by strong performance from companies like Advanced Micro Devices (AMD) and NVIDIA (NVDA). The tech sector's rebound offset broader market caution, with investors eyeing potential earnings reports and the Federal Reserve's policy outlook. Meanwhile, heightened US-Iran tensions over a downed US drone and a potential Iranian missile attack added volatility to risk assets, keeping traders on edge.
The rise in chip stocks reflects renewed optimism about global tech demand and supply chain resilience post-pandemic. For traders, the Nasdaq's performance is critical as it remains a bellwether for growth stocks. The US-Iran situation introduces geopolitical risk, which could disrupt oil markets and influence central bank decisions. Investors are also monitoring the Fed's stance on inflation and interest rates, which will shape equity valuations in the near term.
For the MENA region, Gulf investors with exposure to US-listed tech firms may benefit from the sector's rebound. However, the geopolitical risks could impact regional markets through oil price fluctuations and investor sentiment. Traders should watch for further developments in the US-Iran standoff and the Fed's upcoming statements for clues on market direction.
