U.S. stock futures extended gains and oil prices fell back below $100 a barrel in early European trade, as investors brushed off stubbornly elevated Treasury yields to push equities higher.
Futures for the Dow Jones Industrial Average and the S&P 500 added 0.3% and 0.1%, respectively. Nasdaq futures nudged up 0.1% after the index closed at a record high in the previous session as Magnificent Seven stocks drove the index higher. Large tech names extended gains after hours, with Nvidia rising another 0.5%.
Stocks gained across the board in Europe as the continent-wide Stoxx 600 rose 0.7% in early trade. Asian indexes also largely gained with Japan's Nikkei 225 up 1.05%, though Korea's Kospi slipped 0.9% as the memory-chip stocks that dominate the index pulled back.
"The AI build-out is growing fast enough to help shield related companies and industries from rising yields," Swissquote's Ipek Ozkardeskaya wrote in a note.
Brent crude slipped 0.8% to trade around $99.50 a barrel while WTI crude fell below $89 a barrel as Middle East exports increased, easing supply concerns. Tensions remain elevated, however, as Saudi and Yemeni forces launch a counteroffensive against Houthi militants in the strategic port city of Mokha.
Easing oil prices weren't enough to prompt a significant fall in Treasury yields. Two-year yields nudged lower to trade around 4.830%. Thirty-year and 10-year Treasurys both strengthened but yields still remained close to multidecade highs, with 10-year yields hovering around 5.290% after touching a fresh 24-year high in the last session. Traders await a $58 billion Treasury auction of three-year notes Tuesday. In Europe, pressure on French government bonds eased, while German Bund yields also slipped.
The dollar strengthened further against a basket of currencies. Gold prices were little moved at around $4,160 a troy ounce, while bitcoin pulled back to trade around $85,400.
For the day ahead, investors will watch for the U.S. trade balance for August, and remarks from a handful of Federal Reserve policymakers.
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