US stock index futures climbed Tuesday as Treasury yields pulled back from multi-year highs and oil prices retreated. The S&P 500 sits just 0.6% below its mid-August peak after the Nasdaq closed at a record high Monday, with earnings season and a softer jobs picture now in focus.
Futures rise as yields and oil retreat
S&P 500 E-minis were up 19.5 points, or 0.25% at 5:50 a.m. ET on Tuesday, while Dow E-minis rose 281 points, or 0.55%, and Nasdaq 100 E-minis gained 102 points, or 0.33%. The moves came as Treasury yields dipped from multi-year highs and oil prices fell more than 1%, offering investors some relief ahead of the quarterly earnings season.
The tech-heavy Nasdaq closed at a record high on Monday, lifted by Nvidia and Microsoft, as investors continued to bet on the AI boom that has pushed stock markets to record highs. Nvidia itself rose 0.7% in premarket trading and was last valued at $5.8 trillion. The S&P 500 closed just 0.6% below its mid-August peak on Monday, and a record high for the index would imply the bull market that began in October 2022 remains intact.
Yields ease on rate-cut bets
The yield on 30-year Treasury bonds fell to 5.626%, having touched a 2002 high of 5.702% a day earlier. A softer-than-expected payrolls report last week eased expectations around rate hikes this year, and traders now see a 78% chance of the Federal Reserve holding interest rates steady this month, though a December rate hike remains largely priced in, according to the CME Group's FedWatch tool. Oil added to the relief, with Brent crude trading at $98.58 as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns.
Earnings season looms, movers diverge
'Magnificent Seven' stocks edged higher, with Meta, Tesla and Amazon.com climbing around 0.6% each, while chip stocks such as Intel and Micron Technology were marginally lower. The third-quarter earnings season kicks off next week with reports from large US banks, and analysts on average see S&P 500 earnings jumping over 30% year over year in the quarter, thanks largely to AI-related stocks, according to LSEG data.
Among individual movers, Option Care Health jumped 21.4% after healthcare group McKesson and private equity firm Clayton Dubilier & Rice were reportedly closing in on a deal to buy the infusion services provider for nearly $5 billion. Mattel shares fell marginally after a major shareholder urged the Barbie maker to explore a sale.
Source: Investing.com
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