The Nasdaq Composite closed at a record high of 27,477.31 on Monday, rising 1.1 percent as investors scaled back expectations for a Federal Reserve interest-rate hike. U.S. stock futures remained little changed in early Tuesday trading, with the S&P 500 Futures up 0.1 percent to 7,837.25 points and Nasdaq 100 Futures up 0.2 percent to 31,393.75 points by 21:10 ET.
The rally was driven by a shift in market pricing following Friday's employment report, which indicated that U.S. job growth slowed more than expected in September. According to CME FedWatch data, traders now assign roughly a 20 percent probability to a rate increase at the Fed's October meeting, a sharp decline from approximately 70 percent just one week earlier. While a December increase remains largely priced in, the reduced likelihood of an immediate hike has supported equity prices despite elevated borrowing costs.
Technology shares led Monday's advance in regular trading. Nvidia rose 2.1 percent, reaching a record market value of about $5.76 trillion. Microsoft, Meta Platforms and Tesla also posted gains, contributing to the broader market strength that saw the S&P 500 gain 0.7 percent and the Dow Jones Industrial Average add 0.2 percent.
| Instrument | Change | Level |
|---|---|---|
| S&P 500 Futures | +0.1% | 7,837.25 |
| Nasdaq 100 Futures | +0.2% | 31,393.75 |
| Dow Jones Futures | +0.1% | 51,644.0 |
Borrowing costs remained high on Monday, with the 10-year Treasury yield rising to 5.31 percent, a level near its highs from 2002. Investors continue to weigh heavy government debt issuance against persistent inflation risks.
Oil prices offered some relief to equity markets, with Brent crude holding steady after settling down 2 percent on Monday. The decline followed an increase in Middle East crude exports and pledges from Group of Seven nations to boost supplies, though concerns over disruptions linked to the U.S.-Israeli conflict with Iran limited the drop.
Attention now turns to the start of the quarterly earnings season. PepsiCo and Delta Air Lines are among the companies scheduled to report results this week, while third-quarter results from major U.S. banks are due to begin next week. The Federal Reserve's minutes from its September meeting are also due Wednesday, providing a potential source of clues on how policymakers view inflation and the softer labor market.