U.S. stock index futures rose Monday, following last week's chip-stocks-led pullback, as investors awaited a key slate of earnings that could test Wall Street's AI-driven rally, while escalating Middle East tensions kept risk appetite in check.

The second-quarter earnings season will pick up pace this week, with reports due ‌from several major companies, including Alphabet, Tesla, Intel and IBM .

A surge in AI capital spending has ​been a major driver behind this year's market gains, lifting semiconductor stocks and other companies that are seen as the beneficiaries of the buildout, and helping the major U.S. indexes hit ⁠record highs.

But a powerful rally in chip stocks gave way to a sharp reversal last week, raising ​questions about whether AI-linked gains had run too far.

The Philadelphia SE Semiconductor Index ended Friday more than 20% below ⁠its late-June record high, confirming a bear-market decline.

Investors will closely watch earnings from Intel and Texas Instruments.

"If earnings reports in the coming weeks suggest that we remain in the spend phase of the AI buildout, investors are likely to get more impatient, and the sell-off ‌could drag on over the summer months," said Kathleen Brooks, research director at XTB.

As of 8:33 a.m. EDT, S&P 500 futures rose 26.50 points, or 0.35%, to 7,524.25. Dow futures gained 74 points, or 0.14%, to 52,449.

Nasdaq futures climbed 229.75 points, or 0.80%, to 29,003, while Russell 2000 futures added 9.90 points, or 0.33%, to 2,983.40.

On Monday, memory chipmakers were ‌higher, with Western Digital, Seagate Technology, Micron Technology and SanDisk up between 3.2% and 4.2% in premarket trading.

The three main U.S. indexes fell sharply last week, pressured by a steep pullback in high-flying semiconductor shares.

The declines came even ⁠as benign inflation data eased some fears of ‌a Federal Reserve rate increase later ⁠this month, while major U.S. banks kicked off earnings season on a positive note.

Markets are pricing in about a 12% chance of a ⁠quarter-point rate hike ⁠at the Fed's July meeting and a roughly 53% chance of another hike in September, according to CME's FedWatch tool.

Investors were closely watching the ‌developments in the U.S.-Israeli war with Iran after a recent escalation in the nearly five-month-old conflict.

U.S. forces struck Iran for a ninth consecutive day on Monday, raising concerns over shipping through the Strait of Hormuz.

The renewed tensions have fueled worries that ‌energy prices could climb ​back toward levels seen at ‌the start of the war, reviving inflation concerns.

Earlier in the day, Brent crude rose above $90 a barrel for the first time since early June.

"The escalations have also eroded the assumption that the crisis ​in the Middle East is over and energy prices would normalize," Brooks said.

Among other premarket movers, Domino's Pizza gained 6.5% after the pizza chain's quarterly revenue edged past Wall Street estimates.