US equity futures were cautiously higher ahead of Tuesday's opening bell, with investor sentiment stabilizing following gains fueled by an unexpected upturn in service sector activity.

The Dow Jones Industrial Average futures gained 0.2%, S&P 500 futures increased 0.3%, and Nasdaq futures were up 0.3%.

S&P Global's (SPGI) flash purchasing managers' index report released Monday showed unexpected US private sector growth in March.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.6% at $72.81 per barrel and US West Texas Intermediate crude 0.7% higher at $69.57 per barrel.

The S&P Case-Shiller Home Price Index is scheduled for release at 9 am ET.

The Consumer Confidence Index, due at 10 am ET, is expected to decline to 94.2 in March from 98.3 in February. New home sales are expected to have risen to 682,000 in February from 657,000 reported previously, according to estimates compiled by Bloomberg.

In other world markets, Japan's Nikkei finished 0.5% higher, Hong Kong's Hang Seng ended 2.4% lower, and China's Shanghai Composite closed flat. Meanwhile, the UK's FTSE 100 was up 0.8%, and Germany's DAX index was 1.2% higher in Europe's early afternoon session.

In equities, Tenon Medical (TNON) shares increased more than four-fold pre-bell after the company said late Monday that the US Food and Drug Administration has approved Catamaran SI Joint Fusion System for use in augmenting thoracolumbar fusion.

On the losing side, Mural Oncology (MURA) shares were down 49% after the company said it will stop the development of its ovarian cancer treatment candidate.