Stock futures rose on Tuesday, boosted by gains in bitcoin and technology stocks, as traders tried to recover from a weak start to December Trading. Futures tied to the Dow Jones Industrial Average added 142 points, or 0.3%. S&P 500 and Nasdaq-100 futures gained 0.3% and 0.5%, respectively. Bitcoin rose about 2% Tuesday, recouping some of its losses from the prior day. Tech players linked to the artificial intelligence trade supported the broader market as well, with names like Oracle and Broadcom similarly reversing course from the previous session’s losses. Those two names were last up more than 1% in the premarket. AI chip darling Nvidia increased almost 1%. The major U.S. indexes began the week in the red, ending five-day win streaks on Monday. Risk-off sentiment has pressured the bull market in recent weeks as worries of persistent inflation, elevated valuations and returns on artificial intelligence spending weigh on investors. The slump in cryptocurrencies intensified during the previous session as bitcoin recorded its worst day since March. Crypto stocks Coinbase and Robinhood each declined. November’s standout “Magnificent Seven” stock, Google parent Alphabet, took back some gains. Other tech heavyweights like Palantir also declined. Gold prices and bond yields rose, meanwhile. Although November was a downbeat month for tech stocks, and saw both the S&P 500 and 30-stock Dow eke out small gains, investors are watching for catalysts that could lead to a year-end rally. Traders are currently optimistic that the Federal Reserve will announce an interest rate cut on Dec. 10 at conclusion of its next policy meeting. Markets are pricing a more than 87% chance of a cut during the upcoming meeting, which is much higher than the odds from mid-November, according to the CME FedWatch tool. “Bulls still enjoy a strong tailwind from technical and fundamental factors as we approach year-end. On the technical front, December remains a strong seasonal month, fund flows have been steady, risk metrics have improved, the S&P 500 has surged back above the 50-day moving average, breadth has improved, yet sentiment remains historically weak,” said Mark Hackett, chief market strategist at Nationwide. “The bear’s argument relies on concern over the sustainability of the AI buildout and elevated valuations.” December tends to be a strong month for the broader market. The S&P 500 averages a gain of more than 1% in December, making it the third-best month of the year for the benchmark in records going back to 1950, according to the Stock Trader’s Almanac. U.S. Treasury yields were relatively unchanged on Tuesday morning, as investors looked for signs on whether a rate cut from the Federal Reserve is in the cards. The yield on the benchmark 10-year Treasury was less than 2 basis points higher at 4.114%, as was the 30-year Treasury yield at 4.761%. The 2-year Treasury yield fell less than a basis point to 3.539%. Shares of South Korean auto companies rose Tuesday after U.S. Secretary of Commerce Howard Lutnick confirmed that lower U.S. auto tariffs of 15% on South Korea would retrospectively come into effect, starting Nov. 1. South Korea’s Kospi jumped 1.9% to close at 3,994.93, while the small-cap Kosdaq rose 0.65% to 928.42. Benchmark indexes in the broader Asia-Pacific region were mixed Tuesday. Japan’s benchmark Nikkei 225 index closed flat at 49,303.45. The Topix index also closed slightly above the flatline at 3,341.06. Australia’s ASX/S&P 200 rose 0.17% to end at 8,579.7. Hong Kong’s Hang Seng Index added 0.18%, while mainland China’s CSI 300 declined 0.48%. Oil prices held firm in early trading Tuesday as market participants assessed risks stemming from Ukrainian drone strikes on Russian energy sites, mounting U.S.-Venezuela tensions and mixed expectations for U.S. fuel inventories. Brent crude futures lost just 1 cents, to $63.14 a barrel. U.S. West Texas Intermediate crude gained 5 cents, or 0.1%, to $59.37 a barrel. Both benchmarks advanced more than 1% on Monday, while WTI was near a two-week high. Gold prices slipped on Tuesday, pressured by rising U.S. Treasury yields and profit-booking following a six-week high hit in the prior session, while silver pulled back from its record high hit in the previous day. Spot gold fell 0.7% to $4,203.55 per ounce. U.S. gold futures for February delivery were down 0.9% at $4,234.40 per ounce. “We are seeing some traders take profit after prices rebounded from $4,000 to $4,250 in the last two weeks,” said Carlo Alberto De Casa, external analyst at banking group Swissquote. Additionally, benchmark 10-year U.S. Treasury yields held steady near a two-week high, following weakness in Japanese and European government bonds, reducing the appeal of non-yielding bullion.
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