S&P 500 Futures was flat at 7,836.75 points, Nasdaq 100 Futures was flat at 30,785.50 points, while Dow Jones Futures was flat at 52,478.0 points

U.S. stock index futures steadied early-Tuesday after an artificial intelligence-fuelled rally in technology sparked strong gains in stock market.

Caution was seen kicking in before a closely watched U.S.-China summit later this week, with markets watching for any new trade and AI developments between the world’s biggest economies.

A sustained slide in oil prices also helped boost risk-driven assets, as investors bet on improving diplomatic efforts and supply conditions in the Middle East, even as the Saudi-Houthi conflict raged on and the Strait of Hormuz remained deadlocked.

S&P 500 Futures was flat at 7,836.75 points by 06:30 GMT. Nasdaq 100 Futures was flat at 30,785.50 points, while Dow Jones Futures was flat at 52,478.0 points.

Futures rose following a positive session on stock market, where the NASDAQ Composite soared to a record high on gains in tech.

Meta Platforms Inc was a standout performer on Monday, with the Instagram owner rallying over 11% on optimism over its recently released Muse AI agent.

Chipmaking stocks rose on Monday, with the Philadelphia Semiconductor Index soaring 4.3%. AMD rallied 10% and crossed a $1 trillion market capitalization for the first time ever.

Gains in tech saw the NASDAQ Composite soar 2.26% to a record closing high of 27,122.09 points.

Beyond tech, Wall Street was also encouraged by a sustained drop in oil prices. Brent briefly dropped below $100 a barrel amid hopes for more Middle East diplomacy.

Still, oil prices fell sharply over the past week, as some improvement in flows from Saudi Arabia also pointed to improving supplies, despite continued Houthi aggression against the country.

Chinese President Xi Jinping is set to visit Washington on Thursday, marking his first state visit to the country during President Donald Trump’s second term.

Focus is squarely on the outcome of the upcoming talks, which are broadly expected to cover trade and AI. At the very least, markets expect an extension to the U.S. and China’s temporary trade truce, which is set to expire in November.