(Reuters) -Wall Street futures rose more than 1% on Tuesday as easing U.S. Treasury yields boosted megacap growth and technology stocks, while investors awaited more economic data to gauge the Federal Reserve’s rate hike path.
Data on job openings and factory orders will be in focus after the market opens, a day after weaker-than-expected manufacturing activity showed rising rates taming demand for goods.
Yields on government bonds fell on hopes that the Federal Reserve tap down its aggressive stance, but Bank of New York President John Williams said despite nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward.
“The biggest story here is that last week you saw the Bank of England blink and investors around the world are starting to realize that there are limits to central banks’ hawkishness before things start to break,” said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital.
“The market loves to see that (weakness in yields and dollar) and it sets up well going into earnings season with expectations so low at 3.2% earnings growth.”
The yields on the 10-year U.S. Treasury extended their decline, lifting rate-sensitive growth and technology stocks in trading before the bell.
Megacap stocks such as Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) Inc and Nvidia (NASDAQ:NVDA) Corp rose around 1.6% to 2.6%.
At 8:32 a.m. ET, Dow e-minis were up 389 points, or 1.32%, S&P 500 e-minis were up 58.5 points, or 1.59%, and Nasdaq 100 e-minis were up 213 points, or 1.89%.
Banks such as Wells Fargo (NYSE:WFC) & Co, JPMorgan Chase & Co (NYSE:JPM) and Bank of America Corp (NYSE:BAC) added nearly 2% each.
The rebound in stocks on the first trading day of the final quarter follows the S&P 500‘s lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020.
Investors will continue to keep a close watch on comments from Fed speakers including New York President John Williams, Cleveland President Loretta Mester and Governor Philip Jefferson.
Rivian Automotive Inc jumped 7.6% after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000.
Tesla (NASDAQ:TSLA) Inc bounced back 2.9% from its steepest selloff in four months in the previous session that was triggered by disappointing quarterly vehicle deliveries.
Source: Economy - investing.com
