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%.
Plethora of Fed speakers due
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.
PepsiCo lifts annual profit forecast
In corporate news, the third quarter earnings season is at its infancy, with PepsiCo (NASDAQ:PEP) the highlight Tuesday.
The soft drinks giant lifted its annual profit forecast for a third time this year, banking on multiple price increases and resilient demand for its snacks and beverages. Its stock rose 2.4% premarket.
Other companies set to report during the week include Delta Air Lines (NYSE:DAL) on Thursday as well as the banking giants JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) on Friday.
Crude supply outlook in focus
Oil prices slipped lower Tuesday, handing back some of the previous session’s sharp gains with traders keeping a wary eye on the conflict between Israel and Hamas and the potential for supply disruptions.
By 06:40 ET, the U.S. crude futures traded 0.4% lower at $86.00 a barrel, while the Brent contract dropped 0.4% to $87.78 a barrel.
Both benchmarks surged more than 4% on Monday as traders worried the potential for the conflict to escalate, hitting Middle East supply and making an already tight supply picture worse.
Additionally, gold futures rose 0.4% to $1,870.85/oz, while EUR/USD traded 0.3% higher at 1.0596.
(Oliver Gray contributed to this item.)