US Markets

Nasdaq futures rise with Amazon, Alphabet higher in premarket

Stocks set for recover after two-day tech slump

U.S. stock index futures pointed to a higher open on Tuesday as technology stocks looked to bounce back.

Nasdaq futures traded 21 points higher, with shares of Amazon and Google-parent Alphabet climbing in the premarket. Other big tech names like Facebook and Apple also saw their shares rise before the bell.

Shares of chipmaker Nvidia also traded higher, rising 2.6 percent.

Dow and S&P futures, meanwhile, rose 26points and 4.5 points, respectively.

The Nasdaq composite posted its biggest two-day slide since December on Monday, as investors grew concerned that FAANG stocks – Facebook, Apple, Amazon, Netflix and Google – which have propped up the sector, could be losing momentum.

The ugly sell-off in tech names is not necessarily an indication that the broader market is about to crack, but there could be a summer swoon, analysts say.

On the data front, the National Federation of Independent Business' (NFIB) small business optimism index came in unchanged at 104.5 for May. The Federal Reserve will also begin the first of its two-day meeting, with its interest rate decision due out tomorrow, and the latest Producer Price Indices will be released.

On the earnings front, H&R Block will report after the bell.

In Europe, the pan-European index was around 0.5 percent higher on Tuesday as the U.K. Conservative party looks on track to form a parliamentary majority, bringing greater certainty to the country after an inconclusive general election last week.

In Asia, the Shanghai Composite in China closed 0.46 percent higher, while the Nikkei in Japan closed 0.05 percent lower.

—CNBC's Patti Domm contributed to this report.