U.S. equity futures gained on Tuesday, buoyed by a modest decline in long‑term Treasury yields and a pullback in oil prices. The move offered a welcome breather for investors as the market approaches the busy third‑quarter earnings calendar.
Yield relief and market optimism
The 30‑year Treasury yield fell to 5.626%, retreating from a 2002 peak of 5.702% recorded the day before. The dip came after a softer‑than‑expected payrolls report last week, which softened expectations for further rate hikes this year. Traders now price a 78% probability that the Federal Reserve will hold rates steady at its upcoming meeting, though a December increase remains priced in, according to the CME Group’s FedWatch tool.
Lower yields helped lift futures on the Dow, S&P 500 and Nasdaq 100. At 5:50 a.m. ET, Dow E‑minis were up 281 points (0.55%), S&P 500 E‑minis rose 19.5 points (0.25%), and Nasdaq 100 E‑minis gained 102 points (0.33%).
Oil price pullback
Crude oil prices slipped more than 1% on Tuesday, with Brent trading around $98.58 a barrel. The decline was driven by resilient Middle Eastern export levels and a G7 emergency stockpile release that eased short‑term supply concerns.
Tech and AI‑driven momentum
The technology‑heavy Nasdaq closed at a record high on Monday, propelled by heavyweight names such as Nvidia and Microsoft. Nvidia shares were up 0.7% in pre‑market trading, leaving the company with a market valuation of roughly $5.8 trillion.
Other “Magnificent Seven” stocks – Meta, Tesla and Amazon.com – each edged higher by about 0.6%. Chip makers Intel and Micron Technology saw modest declines.
Analysts expect the AI trade to continue driving earnings growth. LSEG data show that, on average, analysts project S&P 500 earnings to rise more than 30% year‑over‑year in the current quarter, largely thanks to AI‑related companies.
Corporate moves and earnings outlook
The third‑quarter earnings season kicks off next week with reports from major U.S. banks. In the meantime, individual stocks made headlines: Option Care Health surged 21.4% after reports that healthcare group McKesson and private‑equity firm Clayton Dubilier & Rice were nearing a deal to acquire the infusion‑services provider for nearly $5 billion.
Mattel shares slipped slightly after a major shareholder urged the toy maker to explore a sale, citing stalled progress in performance and profitability.
Looking ahead
Investors will watch the upcoming earnings releases for clues on how AI‑centric businesses are translating hype into profit. At the same time, the market will remain attentive to any new data on inflation, labor markets and Federal Reserve policy that could shift the trajectory of yields and equity valuations.
Overall, the combination of easing Treasury yields, lower oil prices and continued optimism around AI‑driven growth provided a modest lift to U.S. market futures, setting a cautiously positive tone as the earnings season begins.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
