U.S. stock futures slid on Tuesday as rising bond yields once again weighed on investors and the third-quarter earnings season gained steam. Futures tied to the Dow Jones Industrial Average lost 86 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures slipped 0.4% and 0.6%, respectively. The 10-year U.S. Treasury yield topped 4.80%, reaching its highest level since Oct. 6 — when it traded at 4.887%. The move followed retail sales data that came in hotter than economists surveyed by Dow Jones had anticipated. Rising yields have pressured the broader market in recent weeks as traders assess the prospects of tighter Federal Reserve policy for longer than expected. Investors have also considered the potential impact from the Israel-Hamas war on the global economy. To be sure, a solid start to the third-quarter earnings season is helping ease concerns somewhat. Bank of America’s results also exceeded analyst expectations, pushing the stock up more than 1% in premarket trading. Goldman Sachs flickered around flat in Tuesday premarket trading as investors parsed the financial giant’s latest report. Several financial names kicked off earnings season with a strong start, including Charles Schwab on Monday and JPMorgan Chase on Friday. Tuesday’s moves follow a strong session for stocks as optimism around earnings season outweighed Treasury yields climbing in the session. The Dow finished Monday up more than 300 points, while the S&P 500 and Nasdaq both ended the session more than 1% higher. Australia and China stocks closed higher Tuesday for the first time in three days, while the New Zealand dollar weakened following an inflation reading, the first since the elections over the weekend. In Australia, the S&P/ASX 200 closed 0.42% higher at 7,056.10, snapping a three day losing streak, while the kiwi dollar weakened 0.39%. Japan’s Nikkei 225 rebounded and gained 1.2%, closing at 32,040.29 and leading gains in Asia. The Topix meanwhile advanced 0.82% to end at 2,292.08. South Korea’s markets also reversed losses from Monday, with the Kospi adding 0.98% to close at 2,460.17 and the Kosdaq rising 1.21% to 820.38. Hong Kong’s Hang Seng index rose 0.79% in the final hour of trading, while mainland Chinese markets ended the session 0.35% at 3,639.40. Oil prices steadied on Tuesday after sliding more than $1 on Monday amid hopes the U.S. would ease sanctions on producer Venezuela and as Washington stepped up efforts to prevent an escalation of the war between Israel and Hamas. Brent crude futures were up 40 cents at $90.05 a barrel, while U.S. West Texas Intermediate crude (WTI) was up 28 cents at $86.94 a barrel. Gold prices was slightly higher on Tuesday ahead of economic data and Federal Reserve Chair Jerome Powell’s speech this week, which could steer upcoming interest rate decisions. Spot gold gained 0.2% to $1,922.89 per ounce, and U.S. gold futures advanced 0.1% to $1,935.50.
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