Wall St futures rise as yields, oil dip

Oct 6 (Reuters) - US stock index futures ‌rose on Tuesday ​as Treasury ​yields dipped from multi-year highs and oil prices retreated, offering investors some relief ahead of the quarterly earnings season.

The tech-heavy Nasdaq closed at a record high on ‌Monday, lifted by heavyweights Nvidia and Microsoft, as investors continued to bet on ⁠the AI boom that has pushed stock markets to record highs.

Nvidia rose 0.7% in premarket trading and was last valued ‌at $5.8 trillion.

The benchmark S&P 500 closed ‌just 0.6% below its mid-August peak on Monday, and a record high for the index would imply the bull market that began in October 2022 remains intact.

Optimism around the AI trade ​and expectations of strong corporate earnings have helped US stocks outperform global peers over the past six months despite higher energy prices and a volatile summer for bond markets that fueled concerns ⁠about tighter monetary policy.

The yield on 30-year Treasury bonds fell to 5.626%, having touched a 2002 high of 5.702% a day earlier.

A ​softer-than-expected payrolls report last week eased expectations around rate hikes this year. Traders now see a 78% chance of the Federal Reserve holding interest rates ​steady this month, though a December rate hike remains largely ‌priced in, according to the CME Group's FedWatch tool.

Oil prices fell more than 1% on Tuesday, with Brent crude trading at $98.58 as resilient Middle Eastern ⁠crude exports and a G7 emergency stockpile release eased supply concerns. [O/R]

'Magnificent Seven' stocks edged higher, with Meta, Tesla and Amazon.com climbing around 0.6% each, while chip stocks such as Intel and Micron Technology were marginally lower.

At 5:50 ⁠a.m. ET, Dow E-minis were up 281 points, or 0.55%, and S&P 500 E-minis were up 19.5 points, or ​0.25%. Nasdaq 100 E-minis were up 102 points, or 0.33%.

The third-quarter earnings season kicks off next week with reports from large US banks.

Analysts on average see S&P 500 earnings jumping over 30% year over year in the ‌quarter, thanks largely to AI-related stocks, according to LSEG data.

Among individual movers, Option Care Health jumped 21.4% after healthcare group McKesson and private equity firm ‌Clayton Dubilier & Rice were reportedly closing in on a deal to buy the infusion services provider for nearly $5 ⁠billion.

Mattel shares fell marginally after a major ‌shareholder urged the Barbie maker ​to explore a sale, saying progress in its performance and profitability had stalled, according to a letter seen by Reuters.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by ‌Maju Samuel)

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