US stock futures rose before the opening bell on Tuesday, August 25 after a losing streak in the Wall Street amid drop in US bond yields and ahead of Nvidia's results.
Nasdaq 100 surged 0.88% to $29,360.5, Dow Jones Industrial Average jumped 0.42% to $53,712, while S&P 500 climbed 0.41% to $53,712.
Stock futures were in green on the backdrop of several global cues, including drop in US Treasury yields and dip in oil prices.
Here are three reasons why stock futures are down today -
Drop in US bond yields
US bond yields were down on Tuesday morning follwoing a report by CNBC that the Treasury Department could utilise its $1 trillion General Account to fund its plans to boost government bond purchases. The 10-year Treasury dropped over three basis points to 4.7%.
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Nvidia earnings
The surge comes ahead of Nvidia's quarterly earnings on August 26, with investors focusing on the company's revenue growth, demand for AI chips, data centre business and its outlook for the coming quarters. It is expected that Nvidia shares could make a market value swing of nearly $280 billion following earnings report, based on options markets.
Options tied to Nvidia are pricing in a 5.4% move in either direction for Thursday, the session after the company reports its results on Wednesday afternoon. The expected move is lower than the 6.5% swing priced into options before Nvidia's May earnings, according to Reuters.
Oil prices dropped
Oil prices fell around 3% on Tuesday to around $87 a barrel following a New York Times report that the US could begin returning evacuated diplomats to several Middle Eastern embassies, easing fears of a fresh escalation in the region. Brent futures were trading 2.92% lower at $87.90 a barrel as markets digested the report, which cited an internal State Department document and three US officials familiar with the matter.
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