US stock futures surged before the opening bell on Tuesday, October 6 after Nasdaq Composite hit an all-time closing high of 27,477.31 in the previous session, boosted by a strong tech rally.
Nasdaq futures rose 0.30% to 31,411.75, S&P 500 gained 0.25% to 7,846, while Dow Jones Industrial Average traded 0.52% higher at 51,825 by 3 pm IST.
Stock futures climbed on backdrop of several global cues, including cooling oil prices, possibly indicating a positive start for Wall Street today.
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Here are three reasons why the US stock market is expected to trade higher today -
Oil Slips
Brent crude oil prices fell over 2% on Tuesday, trading at $98 a barrel as growing Middle East crude exports and the planned release of oil stocks by Group of Seven nations eased immediate supply concerns. Brent gave up most of its gains from the previous week after G7 nations agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves. Meanwhile, Middle Eastern crude exports have already started increasing. Shipping data showed that regional crude exports rose above pre-war levels on four of the seven days in the final week of September, despite attacks on vessels passing through the Strait of Hormuz.
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Tech Rally Continues
Tech stocks continue to advance pre-market after Nasdaq touched a record high close on Monday, driven by Nvidia and Microsoft, as investors remained bullish on the sector ahead to quarterly earnings reports. AI major Nvidia last traded 0.75% in pre-market, Microsoft was up 59%, while Meta shares traded 66% higher. On Monday, Nvidia shares closed 2.12% higher, followed by Meta, up 1.9% while Microsoft ended 1.48% higher.
Bonds Yields Retreat
As oil prices slipped, bonds yields retreated after hitting multi-decade highs. The 10-year note yield fell to 5.27% after surpassing 5.3%, highest since 2002, while the 30-year yield that breached 5.7%, its highest level in 24 years dropped to 5.6%.
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