US stock futures were in green before the opening bell on Friday, October 9 as oil prices dropped and concerns over the sustainability of the artificial-intelligence investment declined.
Nasdaq gained 0.85% to 31,231.25, S&P 500 traded 0.43% higher at 7,849.75, while Dow Jones Industrial Average futures advanced 0.22% to 51,606 by 3:17 pm IST.
Stock futures on Friday rose on backdrop of several global cues, indicating a positive start for Wall Street today.
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Why are US stock futures rising?
Oil Prices Slip
Brent crude slid below $103 a barrel after President Donald Trump said the US does not plan to attack Iran before the midterm elections. He also indicated at “productive discussions” with Tehran. The benchmark hit a two-week high in the previous session over fears that an escalation in the Middle East would disrupt supplies. Crude oil prices surged on Thursday as Iran stepped up attacks on tankers transiting the Strait of Hormuz, a critical route for global oil shipments. At the same time, Hurricane Isaias threatened offshore oil production in the Gulf of Mexico, adding to concerns over supply disruptions.
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Steady Treasury Yields
Treasury yields remained unchanged on Friday after hitting multi year highs as traders reviewed President Donald Trump's decison to not attack Iran till the midterm elections. 10-year US Treasury yields stood at 5.23%, while yield on longer-dated 30-year note, which typically moves on geopolitical events was unchanged at 5.61%. The two-year Treasury yield, was up over 2 basis points at 4.78%.
Chip stocks recover
Nasdaq futures gained as chip stocks rebounded after selloff on Thursday, following reports over OpenAI's revenue raised concerns about the sustainability of AI-led growth. According to reports, OpenAI's annualized revenue is estimated to be $20 billion lower than expected. These fears declined, with chip makers such as Sandisk, Micron, Intel, AMD surged over 1% in the premarket.
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