Futures tied to the Dow Jones Industrial Average rose 0.6%, while S&P 500 futures gained 0.5%. Nasdaq 100 futures advanced 0.9%, suggesting technology stocks could rebound after the sector weighed on Wall Street in the previous session.
The benchmark 10-year Treasury yield fell more than 3 basis points to 4.666%, extending its decline from Monday. The move followed reports that the US Treasury could use its roughly $1 trillion General Account to fund bond repurchases, supporting demand for Treasuries.
Chip stocks were among the strongest movers in premarket trading. Nvidia shares rose more than 1%, while Advanced Micro Devices and Micron Technology gained more than 2% each. Intel climbed more than 3% and Broadcom advanced more than 1%.
Investors are awaiting Nvidia’s quarterly results, due after the market close on Wednesday, for fresh signals on the strength of demand for artificial-intelligence chips and data-centre infrastructure. The results are expected to be a key test for the technology sector after Nvidia shares logged a seventh straight session of declines on Monday.
Beyond corporate earnings, investors are also assessing fresh geopolitical and trade developments, including new US sanctions on Iran and trade measures involving Canada.
The focus will then turn to economic data and monetary policy. Investors are due to receive readings on new home sales, weekly employment changes and manufacturing activity on Tuesday, ahead of the Federal Reserve’s preferred inflation gauge, the PCE price index, on Wednesday.
The data will be closely watched ahead of the Jackson Hole symposium, where Fed Chair Kevin Warsh is scheduled to speak later this week. Investors will look for clues on the central bank’s interest-rate outlook and the path of monetary policy.
In individual stocks, Dick’s Sporting Goods fell about 14% in premarket trading after the retailer reported second-quarter revenue below expectations and cut its full-year outlook. The company reported revenue of $5.59 billion, compared with analysts’ expectations of $5.65 billion, according to LSEG.
Dick’s Sporting Goods now expects full-year revenue of $21.9 billion to $22.2 billion, compared with its previous forecast of $22.1 billion to $22.4 billion, citing challenging conditions in the athletic footwear and apparel market.
Investors will also watch earnings from Intuit and Zoom Communications on Tuesday for further clues on the health of the software sector.
Also Read: The $40 trillion question: Why US bond yields are rising and who pays the price
