Futures Tick Higher with Inflation Data, Earnings in View

Stock futures are modestly higher on Monday night, following a losing day on Wall Street as rising oil prices and bond yields weighed on markets. The Dow Jones Industrial Average futures added 25 points, or 0.1%, while the S&P 500 futures rose 0.1%, and the Nasdaq 100 futures added 0.2%. The after-hours action comes after a negative day for stocks, with the Dow finishing nearly 400 points lower and the S&P 500 sliding close to 1%. Technology stocks felt the brunt of Monday's declines, pushing the Nasdaq Composite down about 1.2%.

Rising bond yields put downward pressure on the market, with the 10-year Treasury yield climbing above 4% to touch its highest levels since early August. Bond yields and prices move inversely to each other. West Texas Intermediate oil futures advancing above $77 per barrel also hurt the stock market. However, energy names climbed alongside the commodity, making it the only sector of the 11 that comprise the S&P 500 to finish Monday in the green.


Stocks have been troubled over the last several days, creating a rocky start to the new trading month and quarter. Investors have grown increasingly fearful of escalating conflict in the Middle East after Iran launched a missile attack at Israel early last week. But the market rallied on Friday after the blockbuster jobs report, propelling the three major indexes to notch their fourth straight positive weeks. The Dow also notched a new all-time closing high on Friday.

Initially, the market rallied on that really good economic news," said Larry Tentarelli, chief technical strategist of the Blue Chip Daily Trend Report. "I think what you've got now is the market adjusting to higher bond yields."

Investors will watch Tuesday for economic data on small businesses and the trade deficit. They'll also monitor speaking engagements scheduled throughout the day for central bank leaders including Boston Federal Reserve President Susan Collins and Atlanta Fed President Raphael Bostic.


As investors await earnings reports from major corporations, the market's response to inflation data and rising oil prices will be closely watched. The geopolitical tensions in the Middle East continue to influence oil prices and their impact on stock market performance. Diversifying portfolios to mitigate risks associated with geopolitical tensions and market volatility is crucial for investors.