Nasdaq futures indicated an upward trajectory on Tuesday following the Nasdaq Composite’s achievement of both intraday and closing records at the start of the week, coinciding with a decrease in the 10-year Treasury yield and crude prices. Futures for the Dow Jones Industrial Average, Nasdaq 100, and S&P 500 experienced increases of 0.6%, 0.6%, and 0.4%, respectively, in the latest trading session. Yesterday, major U.S. stock indexes experienced a notable increase at the beginning of the week, despite investors contending with persistently rising Treasury yields. The S&P 500 concluded the day just 0.3% shy of its previous closing peak established on August 13, with all sectors, excluding real estate, finishing in positive territory.
However, the 10-year Treasury yield, which serves as a benchmark for a wide range of interest rates, pulled back Tuesday after exceeding 5.35%-its highest level since April 2002-yesterday. The yield recently stood at below 5.27%, reflecting a decrease of four basis points from Monday’s close. Oil prices experienced a decline as tanker shipments traversing the Strait of Hormuz saw an uptick. However, market participants remain vigilant regarding the potential for attacks by Iran-backed Houthi rebels targeting Saudi interests. U.S. benchmark West Texas Intermediate crude futures declined by 2% to $87.65 a barrel, whereas front-month Brent crude futures, serving as the international benchmark, also fell by 2% to $98.35.
In corporate news, shares of Space Exploration Technologies rose about 1.5% further in premarket trading after surging more than 7.5% on Monday, enabling CEO Elon Musk to reclaim his status as a trillionaire, according to source. Also rising before the bell were shares of Nvidia, which added 1% following a 2% gain yesterday. The world’s most valuable public company on Monday recorded its second consecutive intraday high and achieved its first closing record since May, nearing a market capitalisation of $6 trillion. The Roundhill Magnificent Seven ETF, which tracks the Magnificent Seven mega-cap tech companies, indicated an increase of 1%. However, Roundhill’s Memory ETF was down nearly 1% premarket as Samsung Electronics fell in South Korean trading, with fellow components Micron Technology, SK Hynix, Sandisk, Western Digital, and Seagate Technology also pointing lower.
Bitcoin was trading around 86,200, modestly higher over the past 24 hours. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, decreased by 0.3% to 101.89. Gold futures increased by 0.9%, reaching a price of $4,190 per ounce. Tomorrow, the Federal Reserve is set to release the minutes from the September Federal Open Market Committee meeting at 2 pm. The minutes may elucidate the perspective of monetary policymakers regarding the progression of the tightening cycle following the mid-September rate hike.
