US stock futures dropped on Tuesday following a rebound on Wall Street as easing oil prices helped lift investor sentiment.

Futures linked to the Dow Jones Industrial Average (YM=F) slid 0.4%. Contracts tied to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) both fell roughly 0.5%.

During Monday’s regular session, the major averages moved higher after crude prices retreated from last week’s sharp rally. The benchmark S&P 500 (^GSPC) climbed 1%, rebounding after ending the previous week at its lowest level of the year from tensions linked to the US-Israeli war with Iran.

A pullback in crude prices also helped support equities. Brent (BZ=F) crude settled down nearly 3% at just over $100 a barrel, while West Texas Intermediate (CL=F) crude dropped over 5% to close at $93.50.

Energy markets have been volatile since the start of the attacks on Iran. Despite US Treasury Secretary Scott Bessent claiming Iranian oil tankers are currently being allowed to move through the Strait of Hormuz, Trump’s “demands” for a multinational effort to escort vessels through the strait remain unanswered.

Market participants are also preparing for the Federal Reserve’s next policy announcement Wednesday, when the Federal Reserve is set to deliver its second interest rate decision of the year. Expectations for near-term rate cuts have eased amid renewed inflation concerns, with 99.1% probability of rates remaining at current levels, according to CME FedWatch.

On the corporate calendar, investors are parsing the information coming out of Nvidia’s (NVDA) highly anticipated GTC event. Jensen Huang, the CEO of the global chip behemoth, announced a slew of deals and said the company sees $1 trillion in chip sales through the end of 2027.

Earnings continue to trickle through, with reports from Tencent (TME), DocuSign (DOCU) and Oklo (OKLO) due on Tuesday.

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