U.S. stock futures climbed slightly Tuesday after the Nasdaq Composite reached a new record high, primarily driven by strong performances in AI-related technology stocks. Globally, Asian and European markets largely mirrored this positive trend, though investor focus remained on persistent elevated Treasury yields and volatile oil prices. Markets anticipate the Federal Reserve’s September meeting minutes for insights into future rate decisions.
U.S. stock futures demonstrated modest advances early Tuesday, building on the Nasdaq Composite's momentum after it achieved a new all-time high. The tech-heavy index concluded Monday's trading session with a gain of approximately 1%, marking both a record close and a historic peak. Meanwhile, S&P 500 futures rose 0.11%, Dow futures added 76 points (0.15%), and Nasdaq-100 futures increased by 0.15%. During regular trading, the S&P 500 climbed 0.7%, and the Dow Industrials advanced about 90 points, or 0.2%.
The artificial intelligence (AI) sector continued its strong performance, driving notable stock movements. SpaceX soared over 7%, while Nvidia and Tesla each posted gains exceeding 2%. Giants like Meta Platforms and Microsoft also saw their shares jump more than 1%, underscoring the tech sector's continued dominance, which concluded Monday at a record close for the S&P 500's tech component.
Across Asia, markets mostly opened higher, tracking Wall Street's gains. Japan's Nikkei 225 edged up 0.29%, Australia's S&P/ASX 200 advanced 0.53%, and Hong Kong's Hang Seng Index added 0.95%. South Korea's Kospi, however, saw a slight dip of 0.23%. Mainland China's markets remained closed for the Golden Week holiday.
European stocks opened Tuesday with positive momentum, as the Stoxx 600 index rose 0.46%, with health-care stocks leading the charge, up 1.36%. Oil and gas shares saw a modest decline of 0.2%.
Oil prices, after falling Monday, showed a slight rebound early Tuesday. Brent crude futures gained 0.42% to $100.74 a barrel, while West Texas Intermediate crude futures added 0.32% to $89.72 per barrel. This comes as Saudi Aramco CEO Amin Nasser cautioned that global oil stockpiles could take two years to replenish, highlighting the ongoing supply squeeze amidst Middle East tensions.
Treasury yields remained a focal point for investors. The benchmark 10-year note yield hovered around 5.315%, while the 30-year yield climbed to 5.674%, both touching multi-year highs. Morgan Stanley Wealth Management investment chief Lisa Shalett noted the volatility in bonds, citing a potential new Fed policy framework, economic growth, high oil prices, and geopolitical conflicts. Traders are now keenly awaiting the Federal Reserve's minutes from its September meeting, due Wednesday, for further clarity on monetary policy direction.
In other news, President Donald Trump signed an executive order allowing the broader use of cheaper, red-dyed diesel to mitigate soaring fuel costs, deferring related taxes through the end of the year. Additionally, French banking group BPCE announced a 7% strategic stake acquisition in Spain's Banco de Sabadell, signaling further consolidation within the European banking sector. Taiwan's Foxconn also reported record September revenue of 1.16 trillion New Taiwan dollars ($36.5 billion), leading to a 4% jump in its shares.
