US stock futures rise as bond and oil yields decline

US stock index futures rose on Tuesday, with Treasury bond yields falling from multi-year highs and oil prices falling, providing investors with some relief ahead of the start of the quarterly earnings season.

The Nasdaq index, which was dominated by technology stocks, closed at a record high level on Monday, with support from NVIDIA and Microsoft shares, as investors continued to rely on the artificial intelligence boom that pushed stock markets to record levels, according to Reuters.

Nvidia shares rose 0.7 percent in pre-market trading, and its market value reached $5.8 trillion at the latest valuation.

The Standard & Poor's 500 index closed on Monday, only 0.6 percent away from the highest level it recorded in mid-August, while the index recording a new record level will mean the continuation of the bull market that began in October 2022.

Optimism about artificial intelligence stocks and expectations of companies achieving strong results helped US stocks outperform their global counterparts during the past six months, despite the rise in energy prices and bond market fluctuations during the summer, which raised concerns about tightening monetary policy.

The yield on 30-year US Treasury bonds fell to 5.626 percent, after touching 5.702 percent the previous day, its highest level since 2002.

The weaker-than-expected jobs report last week led to a decline in expectations for raising interest rates this year. Traders currently see a 78 percent probability that the Federal Reserve will keep interest rates unchanged this month, although markets are still largely pricing in the possibility of a rate hike in December, according to the CME Group's Fed Watch tool.

Oil prices fell by more than 1 percent on Tuesday, with Brent crude trading at $98.58 a barrel, after the flexibility of crude oil exports and the G7 announcement of an emergency release of oil stocks contributed to allaying concerns about supplies.

Shares of the “Great Seven” group rose slightly, as shares of “Meta,” “Tesla,” and “Amazon.com” rose about 0.6 percent each, while shares of chip manufacturers, such as “Intel” and “Micron Technology,” declined marginally.

By 5:50 a.m. EST, Dow Jones mini futures rose 281 points, or 0.55 percent, Standard & Poor's 500 mini futures rose 19.5 points, or 0.25 percent, and Nasdaq 100 mini futures rose 102 points, or 0.33 percent.

The third-quarter corporate results season begins next week, with major American banks announcing their quarterly results.

Analysts on average expect the profits of Standard & Poor's 500 companies to rise by more than 30 percent on an annual basis during the quarter, driven largely by shares of companies related to artificial intelligence, according to LSEG data.

In terms of individual stock movements, Option Care Health's stock jumped 21.4 percent, after reports indicated that the McKesson Group and the private equity firm Clayton Doubleier & Rice were close to concluding a deal to buy the infusion therapy services provider for about $5 billion.

Mattel shares fell slightly after a major shareholder called on the company, which makes the Barbie doll, to consider selling it, saying that progress in its performance and profitability had stalled, according to a letter seen by Reuters.