Tags: u.s. stock futures

US Stock Futures Rise on Dovish Fed Tone

US Stock Futures Rise on Dovish Fed Tone
New York Stock Exchange floor broker (Michael M. Santiago/Getty Images)

Tuesday, 10 October 2023 07:59 AM EDT

Futures tracking Wall Street's main indexes climbed Tuesday as U.S. Treasury yields retreated following dovish comments from Federal Reserve policymakers overnight, though caution prevailed amid escalating tensions in the Middle East.

Top ranking Fed officials indicated rising yields on long-term U.S. Treasury bonds could steer the central bank from further increases in its short-term policy rate.

The 10-year Treasury yield came off its 16-year peak on Tuesday, as trading resumed in the U.S. bond market after Columbus Day, also known as Indigenous Peoples' Day.

Megacap stocks Microsoft, Alphabet, Nvidia and Amazon.com added between 0.2% and 0.4% in premarket trading.

"Although the violence in the Middle East is seen as having only a limited fallout for now, it has nevertheless added a new layer of uncertainty ... so the shift in tone from the Fed is much welcome," Raffi Boyadjian, lead investment analyst at forex broker XM, said.

Traders put the chance of interest rates remaining unchanged in November and December at 90% and around 71%, respectively, according to CME's FedWatch tool.

Focus will be on remarks from a slew of Fed officials including Atlanta's Raphael Bostic, Minneapolis' Neel Kashkari, San Francisco's Mary Daly and Board Governor Christopher Waller during the day.

Israel said it had reclaimed control of the Gaza border, pounding the enclave with fierce air strikes, as the country called up hundreds of thousands of reservists.

Israeli media said the death toll from the Hamas attacks had climbed to 900 people, while nearly 700 Gazans have since been killed in Israeli strikes, according to Gaza officials.

All three major U.S. stock indexes closed higher on Monday, with energy leading gains as supply worries ignited by Middle East tensions sparked a rally in crude oil prices.

Later in the week, investors will look out for inflation readings including September producer price and consumer price indexes as well as the Fed's September meeting minutes.

Toward the end of the week, big U.S. banks including JPMorgan Chase, Wells Fargo and Citigroup will report quarterly results.

At 6:55 a.m. ET, Dow e-minis were up 85 points, or 0.25%, S&P 500 e-minis were up 10.25 points, or 0.23%, and Nasdaq 100 e-minis were up 45.5 points, or 0.3%.

Among stocks, PepsiCo rose 2.2% after the company raised its annual profit forecast for a third time this year. Rival Coca-Cola was also up 1%.

Unity jumped 7.8% after the video-game software maker said its CEO John Riccitiello would retire.

Rivian Automotive added 4.1% on a report that UBS upgraded the EV maker's stock to "buy" from "neutral."

Corning lost 2.8% after J.P.Morgan downgraded the specialty glass maker's shares to "neutral" from "overweight."

U.S.-listed shares of Chinese firms Alibaba Group, JD.com, PDD Holdings and Baidu rose between 0.9% and 2.3% on a report Beijing is considering new stimulus to help meet the government's annual growth target.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
Futures tracking Wall Street's main indexes climbed Tuesday as U.S. Treasury yields retreated following dovish comments from Federal Reserve policymakers overnight, though caution prevailed amid escalating tensions in the Middle East.
u.s. stock futures
471
2023-59-10
Tuesday, 10 October 2023 07:59 AM
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