Futures tick higher amid Fed speak, Middle East conflict - what's moving markets
Investing.com -- U.S. stock futures inched higher, with investors closely monitoring policy commentary from Federal Reserve officials and ongoing developments in the conflict in the Middle East. Traders hunt for safety in U.S. Treasuries as bond markets return from the Columbus Day holiday, while Country Garden shares slump after the cash-strapped Chinese developer misses an international debt payment.
1. Futures point higher as investors gauge Fed speak, Middle East conflict
U.S. stock futures moved higher on Tuesday, but stayed relatively close to the flatline, as traders digested comments from Federal Reserve speakers on interest rates and kept an eye on violence in the Middle East.
At 04:53 ET (08:53 GMT), the Dow futures contract added 61 points or 0.2%, S&P 500 futures gained 7 points or 0.2%, and the Nasdaq 100 futures rose by 31 points or 0.2%.
The major indices ended the prior session in the green, reversing earlier declines. Wall Street was buoyed in part by dovish statements from Fed officials, who suggested that a recent drive higher in U.S. Treasury yields could lessen the need for the central bank to hike borrowing costs in the short term.
Energy stocks were among the best performers, boosted by a jump in oil prices on Monday linked to worries over the geopolitical ramifications of the escalation of hostilities between Israel and Palestinian Islamist group Hamas.
Shares in major airlines dipped following the surge in oil prices and the decision by many carriers to cancel flights to Tel Aviv, Israel's main travel gateway. Meanwhile, defense stocks rallied on news of the conflict, with the S&P 500 Aerospace & Defense index posting its biggest one-day percentage bump since 2020.
2. U.S. Treasury yields slip
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