Key facts
- U.S. stock index futures rose Tuesday, recovering from Monday's declines.
- Technology stocks rebounded in premarket trading.
- Markets largely ignored potential U.S. sanctions on countries trading with Iran.
- Investors are awaiting Nvidia's quarterly earnings report and the PCE inflation data.
- Concerns over government debt and elevated oil prices had previously pushed the 30-year Treasury yield to a 19-year high.
U.S. stock index futures inched higher on Tuesday as technology stocks recovered from sharp declines in the previous session, with investors awaiting a key inflation report and results from AI bellwether Nvidia. On Monday, the S&P 500 and Nasdaq closed lower, pulled down by semiconductor shares amid concerns over AI-driven growth and lofty valuations. Markets largely shrugged off a U.S. threat that countries continuing to trade with Iran could be forced out of the dollar-based finance system, as no specific countries were named and no timelines were provided for potential penalties. Concerns over ballooning government debt and elevated oil prices had previously pushed the 30-year Treasury yield to a 19-year high, impacting technology stocks. The U.S. Treasury's intervention, including increased buybacks and tapping its general account, has helped calm some market jitters. Money market participants are pricing in one 25-basis-point rate increase by the end of the year. Fed Chair Kevin Warsh's Jackson Hole speech on Friday will be closely watched for insights into the central bank's monetary policy approach.