U.S. stock index futures declined Monday evening following renewed tensions between the U.S., Israel, and Iran that sparked heightened volatility on Wall Street. Wall Street indexes rebounded from steep losses to end marginally higher, aided by robust business activity data, while technology shares saw some bargain buying after logging steep losses in February.

Market focus remained squarely on the Middle Eastern conflict as U.S., Israeli, and Iranian leaders signaled no plans to wind down hostilities. The U.S. and Israel attacked Iran over the weekend, sparking bitter retaliation from the Islamic republic. Oil prices rose sharply in response to the hostilities, fueling inflation concerns and fears of a more hawkish stance from major central banks.

Despite the geopolitical tensions, February PMI data showed stronger-than-expected U.S. economic activity, with manufacturing marking a second straight month of growth. However, ISM data also revealed rising prices in February, even before the potential energy shock from the Middle Eastern conflict. The Federal Reserve faces mounting pressure to maintain higher interest rates longer to curb sticky inflation, with several Fed officials set to speak in the coming days, offering more cues on monetary policy.