US stock futures rose on Tuesday as easing Treasury yields and cheaper oil gave Wall Street another chance to extend Monday’s tech-led advance.
Dow futures gained over 220 points or 0.55%, S&P 500 futures rose 0.25% and Nasdaq 100 futures added 0.4%.
The Nasdaq closed at a record on Monday, while the S&P 500 finished just 0.6% below its August peak.
Nvidia climbed again in pre-market trading as its valuation approached $6 trillion.
5 things to know before Wall Street opens
1. Lower yields are giving expensive stocks some breathing room
The 30-year Treasury yield eased to about 5.63% after touching 5.70% on Monday, its highest since 2002.
Markets now price roughly a 78% chance that the Fed leaves rates unchanged this month after last week’s soft payrolls report.
Goldman Sachs’ Tony Pasquariello told MarketWatch that high yields remain a challenge, but strong earnings, fund flows and AI-led capital spending leave him constructive on US equities.
2. Oil below $100 removes another inflation headache
Brent fell to about $98.60 and WTI to roughly $87.60 as stronger Middle East exports and a G7 emergency reserve release eased supply concerns.
The decline helps equities because oil had been feeding inflation fears and the bond selloff.
The relief is not complete, as security risks around Saudi infrastructure and the Gulf remain, so another disruption could quickly reverse part of the move.
3. Nvidia is closing in on a $6 trillion valuation
Nvidia gained about 0.7% before the bell after closing at a record, leaving its market value near $5.8 trillion.Analysts calculated that the shares would need to move above roughly $249 to reach $6 trillion.
BNP Paribas analyst Karl Ackerman told Barron’s that Nvidia’s full-stack hardware and software ecosystem should keep it dominant in AI computing, supporting his $345 price target.
4. Labour data could change the rates story again
Tuesday brings ADP’s weekly employment reading, trade data and comments from Fed Governor Michelle Bowman. The Atlanta Fed will also update its GDPNow estimate later in the morning.
The risk is straightforward: another soft labour reading could extend the decline in yields, while a stronger number or hawkish Fed message could revive the higher-for-longer trade.
5. Option Care leads the pre-market movers
Option Care Health jumped more than 20% after the Financial Times reported that McKesson and Clayton, Dubilier & Rice were nearing a deal worth more than $5 billion including debt.
The proposed structure would give CD&R a 51% stake and McKesson 49%, according to the publication.
The broader tape remains AI-driven. Analysts expect S&P 500 third-quarter earnings to rise more than 30% from a year earlier, with AI-related companies doing much of the heavy lifting.
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