Stock futures were up Tuesday as the tech rally that drove the Nasdaq to
a fresh record high continued to rage on in premarket trading.
"AI-linked earnings growth continues to overpower broader macro discomfort, providing an effective floor for risk appetite," Tickmill Group said.
Treasury yields were taking a breather as investors pondered whether the recent selloff had gone too far and now offered attractive levels to start buying again.
"Markets have had another volatile session over the last 24 hours, as investors grappled with European contagion risk and a fresh Treasury selloff," Deutsche Bank said.
Meanwhile, a pullback in oil prices was adding to the market optimism. WTI slipped below $90 a barrel as immediate supply concerns eased following an increase in Middle East exports and the release of G-7 emergency stockpiles.
"Oil producers in the Persian Gulf continue to adapt to the region's situation," ING said.
For the day ahead, investors will watch for the U.S. trade balance for August, and remarks from a handful of Federal Reserve policymakers.
Stocks to watch
Lamb Weston is due to report earnings before the bell, followed by drinks company Constellation Brands after the close.
Nvidia rose again before the bell, after closing at a new all-time high on Monday for the first time since May.
SpaceX's stock rose in brisk premarket trading, extending a recent surge. The rally has made Elon Musk a trillionaire once again, according to Forbes.
Watch For:
U.S. Trade Balance for August; Canada Trade for August
Today's Top Headlines/Must Reads:
- Companies Raise More Than $1 Trillion in Equity Markets, But AI, Bond Yields Sour Mood
- Oil Is Flowing From Hormuz Again-Just Not the Kind the World Needs Most
- France's Appetite for 'Magic Money' Has Turned Into a Debt Bomb
MARKET WRAPS Forex:
The dollar remained firm after reaching its highest level since April 2025 against a basket of currencies Monday, supported by U.S. interest-rate rise expectations and French debt concerns.
The euro rose. The currency may weaken if expectations ease for the European Central Bank's further rate increases, SMBC Nikko Securities said.
Bonds:
Treasury yields fell as some investors found yield levels near multidecade highs attractive enough to tempt them to buy the bonds again.
The Treasury curve has seen a broad steepening move recently as longer-dated Treasury yields have continued setting multidecade highs, said HSBC.
Energy:
Brent crude was down 0.4%, while WTI futures fell 0.8%.
Metals:
Gold prices ticked higher in early European trading, with focus on Treasury yields and the dollar, as well as fiscal and political turmoil in the eurozone.
TODAY'S TOP HEADLINES
What Oura's Stalled IPO Tells Us About One-Hit Wonders
Oura's glossy smart ring is everywhere these days: in high-profile TV ad campaigns and on the fingers of plenty of people.
Yet when Oura tried to go public late last month, it couldn't find enough buyers at its proposed price and shelved the listing. The company blamed jittery markets, despite major stock indexes being near record highs, and said it could afford to pick its moment.
L'Oréal Taps Advisers to Explore Unloading Chemical-Related Liabilities
L'Oréal has engaged restructuring advisers to explore options for mounting U.S. legal liabilities stemming from its use of talc and other chemical ingredients in some of its cosmetic products, according to people familiar with the matter.
L'Oréal's U.S. subsidiary is working with restructuring counsel Weil Gotshal & Manges and investment bank Ducera Partners to address mass lawsuits from individuals alleging that the talc products have caused illness, the people said. L'Oréal is also among a group of beauty-products companies facing allegations that hair-relaxing products caused users to develop cancer.
Genmab Shares Climb After Positive Study Results for Blood-Cancer Drug
Genmab shares jumped after the biotechnology company and partner AbbVie said their Epkinly drug helped extend the time patients with a common type of lymphoma lived without the disease getting worse in a late-stage clinical trial.
Shares in Genmab were up 8.3% in European morning trading Tuesday, taking their year-to-date gain to 27%.
SoftBank-Backed DayOne Data Centers Plans to Raise Up to $5.0 Bln in U.S. IPO
A SoftBank-backed data-center company is seeking to raise up to $5 billion in a U.S. initial public offering, according to people familiar with the situation, in a test of investor appetite for artificial-intelligence-related stocks in the world's busiest equity-fundraising market.
DayOne Data Centers plans to list its American depositary shares on the Nasdaq by the end of the year, these people said. The company filed its IPO prospectus to the Securities and Exchange Commission on Monday.
Eurozone Retail Sales Edge Higher Despite Slump in Fuel Sales
Retail sales in the eurozone inched higher in August, despite automotive fuel sales slipping as oil prices once again gained ground in the month.
Sales volumes in the 21-member currency area rose 0.1% on month, swinging from a 0.6% decline in July, the European Union's statistics body Eurostat said Tuesday. Economists polled by The Wall Street Journal expected a 0.3% pickup.
Companies Raise More Than $1 Trillion in Equity Markets, But AI, Bond Yields Sour Mood
Companies raised more than $1 trillion in global equity markets for only the second time ever over the first nine months of the year, yet higher borrowing costs and artificial-intelligence fears are starting to dampen spirits, a Mergermarket report said.
Finnish smart-ring maker Oura postponed its public offering last month blaming "uncertainty in the IPO market." The company joined a host of anticipated private companies that reportedly delayed their IPO plans, including SoftBank-backed SB Energy and cloud-services company Nscale.
German Factory Orders Tumbled in August
German manufacturing orders plummeted in August, pointing to increasing pressure on industrial demand as the conflict in the Middle East continues to keep energy costs elevated.
Factory orders in the eurozone's largest economy fell 10.6% on month, compared with a 3.2% rise in July, data agency Destatis said Tuesday. A consensus of economists polled last week by The Wall Street Journal had expected a smaller decline of 1.0%.
France's Appetite for 'Magic Money' Has Turned Into a Debt Bomb
France is on the precipice of a dangerous financial spiral.
The global surge in interest rates has exposed the country, once considered an oasis of relative stability in Europe's financial markets, as one of the continent's weakest links. France now pays more to borrow than former crisis hot spots like Greece and Italy. Its government is running a budget deficit surpassed only by the United States among its peers.
Oil Is Flowing From Hormuz Again-Just Not the Kind the World Needs Most
Ships are ferrying almost as much crude oil out of the Strait of Hormuz as they were before the Iran war. But they are barely moving any barrels of the fuel the world needs most: diesel.
For now, the distinction is paramount in American politics. President Trump's team has explored a long list of options to arrest the skyrocketing price of diesel fuel, which factors into the cost of groceries, gadgets and just about everything else moved on semitruck beds.
Threat of Iranian Drone Attack Prompted U.S. to Pull Bombers From U.K. Base
The U.S. abruptly moved a dozen B-1 bomber aircraft from a U.K. military base on Sunday because of urgent concerns about a potentially complex drone attack ordered by Iran's Islamic Revolutionary Guard Corps, according to U.S. and European officials briefed on the matter.
The planned attack was part of a multifaceted Iranian plot to target the aircraft and kill personnel at RAF Fairford, including American pilots, the officials said.
Saudi-Backed Forces Launch Fight to Free Bab al-Mandeb From Houthis
Saudi and Yemeni forces pressed a counteroffensive against Houthi fighters Monday, officials said, seeking to oust the rebels from the strategic port city of Mokha and ease the threat to energy exports through the narrow Bab al-Mandeb Strait.
Around 100 jet fighters were providing air cover to Yemeni ground troops as they pushed north along the coast in a flanking move toward Mokha in a dawn operation, said Maj. Gen. Turki al-Maliki, a spokesman for the Saudi-led military coalition in Yemen.
Write to priscila.barrera@wsj.com
TODAY IN CANADA Earnings:
Economic Indicators (ET):
1230 Aug International merchandise trade 1400 Sep Ivey Purchasing Managers Index Stocks to Watch:
GreenPower Motor Plans 1-for-5 Share Consolidation to Regain Compliance With Nasdaq $1 Bid Price Rule
NOVAGOLD Files And Mails Materials For Special Meeting To Approve Proposed Acquisition Of 100% Of Donlin Gold
Expected Major Events for Tuesday 02:00/JPN: Sep Imported Vehicle Sales
06:00/GER: Aug Manufacturing orders
06:00/GER: Aug Manufacturing turnover
06:45/FRA: Aug Industrial production index
08:30/UK: Sep S&P Global UK Construction PMI
10:00/FRA: Aug OECD CPI
12:30/CAN: Aug International merchandise trade
12:30/US: Aug U.S. International Trade in Goods & Services
12:55/US: 10/03 Johnson Redbook Retail Sales Index
14:00/CAN: Sep Ivey Purchasing Managers Index
14:00/US: Oct RCM/TIPP Economic Optimism Index
20:30/US: API Weekly Statistical Bulletin
23:30/JPN: Aug Provisional Labour Survey - Earnings, Employment & Hours Worked
23:50/JPN: Sep International Reserves / Foreign Currency
23:50/JPN: Sep Provisional Trade Statistics for 1st 20 days of Month
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