Dow futures rise; Fed speakers in focus, PepsiCo lifts forecast
Investing.com — U.S. stock futures rose Tuesday, boosted by lower U.S. Treasury yields as investors digested commentary from Fed officials while keeping an eye on developments in the conflict between Israel and Hamas.
By 06:40 ET (10:40 GMT), the Dow Futures contract was up 95 points, or 0.3%, S&P 500 Futures traded 11 points, or 0.3%, higher and Nasdaq 100 Futures climbed 50 points, or 0.3%.
The main indices on Wall Street closed higher Monday, overturning early losses, buoyed in part by dovish statements from Fed officials, who suggested that a recent move higher in U.S. bond yields could lessen the need for further interest rate hikes.
The 30-stock Dow Jones Industrial Average ended Monday almost 200 points, or 0.6%, higher, the benchmark S&P 500 gained 0.6%, while the tech-heavy Nasdaq Composite closed up 0.4%.
Fed Vice Chair Philip Jefferson said on Monday that the central bank could «proceed carefully» in deciding whether any further increases are warranted, while Dallas Fed President Lorie Logan indicated rising Treasury yields could steer the Fed from further rate increases.
This was accompanied by a drop in yields, with the benchmark 10-year U.S. Treasury yield dropping from its 16-year peak on Tuesday as trading resumed in the U.S. bond market after Columbus Day, on a combination of these comments and demand for safe assets given the turmoil in the Middle East.
There are a number of Fed officials due to speak later Tuesday, including Raphael Bostic, Christopher Waller, Neel Kashkari and Mary Daly.
Their views on the path of interest rates for the remainder of the year will be in focus ahead of Wednesday’s release of the minutes from the last Fed meeting in September.
In corporate news, the third quarter
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