Stock market today: Dow, S&P 500, Nasdaq futures rise as AI trade takes center stage

US stock futures climbed on Tuesday as the AI trade continued to take center stage on Wall Street.

S&P 500 futures (ES=F) rose roughly 0.5%, while those on the Nasdaq 100 (NQ=F) advanced 0.8%. Contracts on the Dow Jones Industrial Average (YM=F) , which includes fewer tech stocks, moved up 0.3%.

OpenAI said after Monday's market close that it had confidentially filed paperwork for an initial public offering, a week after rival Anthropic took the same step . Both AI companies are now positioned to trade on Wall Street as soon as this fall.

Tech stocks lifted markets to a modest rebound to start the week following a bruising session on Friday . The action highlighted the strength of AI optimism despite growing concerns that persistent inflation could prompt the Federal Reserve to consider a rate hike this year.

Meanwhile, one of the primary drivers of rising prices — the war with Iran — shows no signs of ending, though President Trump said peace talks are on track after Iran and Israel agreed to end recent tit-for-tat attacks .

Wall Street is gearing up for a major event on Friday, when SpaceX ( SPCX ) could make its market debut and set a record for the largest public offering in history.

The $31 trillion Treasury market has an unequivocal message for Kevin Warsh's Federal Reserve: Interest rates aren't high enough.

Yields on policy-sensitive US two-year notes have surged to their highest level in more than a year after a trove of economic data led traders to price in at least one quarter-point rate hike as soon as October. At around 4.15%, the two-year yield trades well above the Fed's current policy band of 3.5% to 3.75%, a divergence that began in March.