Global stocks have rallied as investors rushed to buy the latest dip in tech stocks, while oil prices fell after Israel and Iran agreed to halt attacks on one another for now.
In Europe, the STOXX 600 edged up 0.5 per cent on Tuesday, led by tech heavyweights ASML and Infineon.
US stock futures rose 0.4 per cent to 0.6 per cent as a broad range of shares gained in pre-market trading, including Nvidia, Eli Lilly and Goldman Sachs, all of which were up about 0.6 per cent.
Excitement about artificial intelligence was front and centre, with ChatGPT maker OpenAI confidentially filing for a US initial public offering on Monday, days before SpaceX's eargerly awaited market debut on Friday.
"Wall Street bankers and CEOs are beside themselves with excitement about these mega-cap listings, however, on the street there is some caution setting in," XTB research director Kathleen Brooks said.
"Although we fully expect the SpaceX IPO to be successful, the IPO itself is probably the least interesting event; what is far more interesting will be SpaceX's future earnings reports, which will need to be big to justify a valuation that is 56 times forward earnings."
The next big test for tech will be results from Oracle on Wednesday.
Apple shares, meanwhile, failed to get a boost from a long-delayed AI overhaul of Siri, unveiled at the company's annual Worldwide Developers Conference.
Investors are also wary about the risks stemming from rising borrowing costs.
US 10-year Treasury yields are above 4.5 per cent and, crucially, 30-year yields have spent more days north of five per cent in 2026 than in any year since 2007, according to LSEG data.
In the Middle East, tensions are running high and maritime traffic through the Strait of Hormuz is well below normal levels, which is keeping oil prices above $US90 a barrel.
The prospect of the Federal Reserve raising rates to curb unwelcome pick-ups in inflation has dented bonds and boosted the dollar, which has gained about two per cent in a month.
Friday's May payrolls report helped cement the view that at least one hike in 2026 is a possibility.
Data on US consumer prices, due Wednesday, are expected to show surging energy costs kept pushing headline inflation higher in May.
Futures imply about a 60 per cent chance of a Fed rate rise as soon as October, and a quarter-point move is almost fully priced for December.
Markets are also fully priced for a quarter-point hike to 2.25 per cent by the European Central Bank when it meets on Thursday, and they see the key rate at 2.5 per cent or 2.75 per cent by the end of 2026.
The surprising strength of US employment kept the dollar underpinned at 160.2 yen, above the 160 mark that many believe could trigger more buying by Japanese authorities.
The euro was last up 0.1 per cent at $US1.1546, just above a nine-week low of $US1.15, while the pound edged up off a three-week trough to trade about $US1.338.
In commodity markets, Brent crude futures fell 1.75 per cent to $US92.60 a barrel.
The price of oil has retreated from late April's four-year high of $US126, but it is still nearly 30 per cent higher than where it was in late February, while futures for the delivery of crude in six months' time are 21 per cent above those levels.
