Source: Sharecast
As of 1230 BST, Dow Jones futures were up 0.25%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.33% and 0.56% firmer, respectively.
The Dow closed 557.37 points lower on Monday as escalating tensions in the Middle East led to renewed fears that US and Israel's conflict with Iran may not be as close to resolution as previously hoped.
Futures traded higher early on Tuesday, bouncing back from Monday's losses that followed reports from the United Arab Emirates that Iran had launched drones and missiles against it, putting an already fragile ceasefire between the US-Israel alliance and Iran on even shakier ground.
US officials also claimed American forces had sunk Iranian boats in the Strait of Hormuz, with admiral Brad Cooper, who leads US Central Command, saying that six small Iranian vessels attempting to interfere with commercial shipping had been eliminated, according to Reuters. Iranian state media, on the other hand, denied that any boats had been sunk.
However, futures traded higher as oil prices headed south, with West Texas Intermediate futures down 2.10% at $104.18 a barrel, while international benchmark Brent crude futures were 1.22% lower at $113.04 a barrel.
In terms of Tuesday's corporate earnings, Pfizer reported better-than-expected first-quarter earnings and revenue on Tuesday, with the pharmaceutical giant earning $0.75 per share, excluding certain items, on revenues of $14.45bn, while Budweiser parent company Anheuser-Busch InBev also reported a quarterly earnings and revenue beat of $0.97 per share and $15.27bn, respectively.
Elsewhere, digital payments giant PayPal's Q1 earnings and revenue came in ahead of estimates, with the group also announcing a $1.5bn cost reduction program over the next two to three years. PayPal Q1 earnings rose 1% to $1.34 per share on an adjusted basis, while revenue climbed 7% to $8.35bn.
Still to come, chipmaker AMD and video games developer Electronic Arts will release their latest quarterly figures after the close.
On the macro front, March goods and services trade balance figures will be released at 1330 BST, while S&P Global's April composite and services PMIs will follow at 1445 BST, and the Institute for Supply Management's April services PMI, March JOLTS job openings report, and both February and March new home sales data were slated for publication at 1500 BST.
Reporting by Iain Gilbert at Sharecast.com