Nasdaq futures experienced a modest increase on Tuesday, following a decline in major indexes at the start of the week, as both Treasury yields and oil prices halted their upward trajectory. Futures for the Nasdaq 100, S&P 500, and Dow Jones Industrial Average experienced increases of 0.2%, 0.1%, and 0.1%, respectively, in the latest trading session. Yesterday, the tech-focused Nasdaq Composite led major U.S. stock indexes lower, while Treasury yields surged, marking the beginning of the trading week. The 10-year Treasury yield, a key indicator for various interest rates such as mortgages, corporate bonds, and other loans, was recorded below 5.22% in recent trading, reflecting a decline of nearly three basis points from Monday’s close. Early yesterday, the yield reached above 5.27%, marking its highest level since 2007.
The recent weeks have witnessed a pronounced increase in the 10-year yield, coinciding with heightened expectations regarding an interest-rate hike at the Federal Reserve’s upcoming meeting in late October, a development partially attributed to the rise in oil prices. According to CME FedWatch, traders currently assign a 73% probability to a Federal Reserve rate increase next month, a notable rise from the 55% probability observed just one week prior. Oil prices experienced a modest decline on Tuesday as Saudi Arabia increased exports via its essential East-West pipeline. U.S. benchmark West Texas Intermediate crude futures declined by 0.8% to $91.80 per barrel, whereas Brent crude futures, the international benchmark, decreased by 0.7% to $104.50.
Memory stocks and other AI-related companies experienced a rebound in premarket trading following a decline the previous day. Roundhill’s Memory ETF and the broader iShares Semiconductor ETF advanced by 2% and less than 1%, respectively, following declines of more than 3.5% and 2% on Monday. Meta Platforms shares, which fell nearly 5% yesterday, pointed up less than 1% after the Facebook parent announced Muse for Small Business, a workplace version of its popular new AI agent. Fellow Magnificent Seven mega-cap tech stock Nvidia also rose modestly a day after it was the only one of the septet to end in the green. The Roundhill Magnificent Seven ETF was little changed before the bell.
Several AI executives, including Nvidia CEO Jensen Huang and Anthropic’s Dario Amodei, are scheduled to meet with President Donald Trump today to discuss the risks associated with AI. Bitcoin traded around $84,000, reflecting a modest increase over the past 24 hours. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, registered an increase of 0.2% at 101.41. Gold futures increased by 0.3%, reaching $4,180 per ounce. Tomorrow, investors will be focused on the release of the latest Personal Consumption Expenditures data, and their attention will shift on Friday to the U.S. jobs report for September.
