U.S. stock index futures were higher Tuesday as a decline in Treasury yields stabilized after a sharp fall recently.
At around 7:30 a.m. ET, Dow Jones Industrial Average futures indicated a gain of 176 points at the open. Futures on the S&P 500 and Nasdaq 100 also rose.
The benchmark 10-year U.S. yield traded at 2.44 percent a day after reaching its lowest level since December 2017. The decline in the 10-year rate caused a so-called yield-curve inversion as the 3-month Treasury bill rate moved above the benchmark rate. Investors see a yield-curve inversion as a signal that a recession may be on the horizon, so a rise in long-term rates is being viewed as a positive right now.
The yield curve inverted amid the release of weak economic data from the U.S. and around the world as well as a downgraded U.S. economic outlook from the Federal Reserve.
Later on Tuesday, a slew of U.S. data is scheduled for release. Durable goods orders and the Philadelphia Fed nonmanufacturing index are both due out at 8:30 a.m. ET. Consumer confidence numbers are also set for release at 10 a.m.
Wall Street closed Monday with small gains. News that the special counsel Robert Mueller did not find evidence that President Donald Trump colluded with Russia in the 2016 presidential race bolstered the markets by removing some uncertainty. Investors were also hopeful that with the Mueller investigation out of the way, Trump will turn his attention to cementing trade deals. Overall, however, concerns regarding the global economy capped market gains.
Shares of Bed Bath & Beyond skyrocketed more than 19 percent in the premarket after The Wall Street Journal reported three activist investors are trying to replace the company’s entire board of directors. The stock was on pace to post its biggest one-day since 2009.