US equity index futures rose on Tuesday, driven by gains in technology leaders and declines in both Treasury yields and oil prices.

As of press time, Dow futures were up 0.71%, S&P 500 futures had gained 0.50%, and Nasdaq futures were 0.62% higher.

A rally in chip stocks helped lift the broader market.

Advanced Micro Devices (AMD) futures rose nearly 2%, while other semiconductor names including NVIDIA (NVDA) and Broadcom (AVGO) each advanced roughly 1%.

Treasury yields pulled back from their highest levels since 2002 after Treasury Secretary Scott Bessent insisted that the government's debt burden remains manageable.

The 10-year and 30-year US Treasury yields fell 3 basis points and 4 basis points respectively, to 5.27% and 5.63%, while the 2-year yield was roughly flat.

On Tuesday, crude oil prices retreated amid signs that more crude supply is flowing through the Strait of Hormuz.

This marks a pause in the global bond market selloff, which had been driven by inflation concerns stemming from the US-Iran war and growing expectations of further monetary tightening by the Federal Reserve.

Bessent sought to reassure investors, saying that a combination of economic growth and reduced spending would "soon" begin to change the US government's borrowing trajectory.

In a fireside chat in Pennsylvania on Monday evening, he said the government would begin to "reverse this trend."

Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, said in a client note that the bond market has been volatile over the past six weeks.

She attributed the volatility to several factors, including a potential new Federal Reserve policy framework, the growth backdrop, elevated oil prices, and the ongoing Middle East conflict.

Shalett wrote: "Although intraday implied volatility has picked up, the swings over these six weeks have not reached the extreme levels seen when the 2022 US stock bear market erupted."

Traders are now awaiting the release on Wednesday of the minutes from the Fed's September policy meeting, which could provide clues about officials' rate decisions.

In addition to falling Treasury yields, declining oil prices also provided a boost to equities on Tuesday.

Brent crude futures fell 2% to about $98 a barrel, while WTI crude futures dropped 2% to around $87 a barrel.

US stocks closed higher in the previous session, with the Nasdaq Composite hitting a record high, and the tech-heavy index could extend its gains.

In Asian markets: Japan's Nikkei 225 rose 0.29% on Tuesday; South Korea's Kospi fell 0.23%; Australia's S&P 200 gained 0.53%; Hong Kong's Hang Seng Index advanced 0.95%; mainland Chinese markets were closed for the Golden Week holiday.

Witnessing history: the global share of pure gasoline vehicle sales has fallen below 50% for the first time.

The latest data from Mobility Global shows that in the first half of 2026, pure gasoline models accounted for 49% of global new vehicle sales — the first time in history that the pure gasoline share has dropped below half, and a sharp 24% decline from 73% in 2021.

The data also shows that in the first half of this year, the overall auto market contracted by about 5%, while the decline in pure gasoline vehicle sales was twice that of the broader market.

Industry insiders attribute the accelerating market shift to oil prices.

Specifically, fuel prices surged sharply due to the Middle East conflict, prompting consumers to seek vehicles with lower operating costs.

By region, China's gasoline vehicle sales fell 26% year-on-year in the first half, the largest decline globally; Europe followed with a 13% drop.

In terms of pure electric vehicle sales, the European market grew 32% year-on-year to 1.81 million units; the Southeast Asian market surged 81% to 350,000 units; and the Oceania market doubled to 110,000 units.

Investors are starting to say "no" to high AI valuations, and Wall Street IPO activity has plummeted.

Wall Street IPO activity has slowed to a trickle, with weak investor demand for new share offerings and concerns about excessive valuations weighing on a quarter that had been expected to see a listing boom.

Delays in the IPOs of Anthropic and OpenAI have also dampened sentiment in the US equity capital markets.

The head of equity capital markets at a large US asset management firm said: "Nobody cares about any company other than Anthropic right now."

Investment bankers' booming business this year was largely thanks to SpaceX's June IPO.

But growing concerns about an AI industry downturn and public opposition to data centers have caused the IPO market to dry up in recent weeks.

The banker added that investors are increasingly questioning the "detached from reality" valuations of companies tied to the AI investment boom.

Data from BCA Research shows that tech companies that went public this year have seen their share prices fall by an average of about 23% since their first trading day, further fueling concerns that banks underpriced deals too aggressively to win underwriting mandates.

Stocks in focus: Alphabet shares rose about 0.5% and Constellation Energy surged more than 6% after Google announced a major long-term power agreement with Constellation Energy.

Google will purchase power corresponding to 890 megawatts of new nuclear capacity, along with a separate 2,700-megawatt power supply agreement, which will support more than $4.3 billion in new investment by Constellation Energy.

Medical services company McKesson and private equity firm Clayton, Dubilier & Rice (CD&R) have entered advanced talks to jointly acquire infusion services provider Option Care in a deal valued at more than $5 billion.

Following the news, Option Care Health shares soared more than 20%, while McKesson shares rose 1.5%.

Berkshire Hathaway disclosed in a regulatory filing that it purchased about 2.4 million shares of Lennar.

Lennar shares rose 1.5%, while Berkshire Hathaway shares edged higher.

NeoGenomics shares rose 5% after the company announced a succession plan.

Current President and Chief Operating Officer Warren Stone will take over as head of the company from Tony Cooke in January 2027.

According to FactSet data, NeoGenomics also reported preliminary third-quarter total revenue of $209 million, above the consensus estimate of $205.9 million.

Citigroup raised its price target on AMD to $800, implying more than 26% upside from Monday's closing price, sending the chipmaker's shares up nearly 2% in premarket trading.

Citigroup cited recovering CPU demand driven by Meta's Muse agent as the reason for the target price increase.

Citigroup said: "AMD will be the main beneficiary of the CPU renaissance."

Evercore ISI upgraded Procter & Gamble to market perform, and shares of the household products company rose 1.2%; the firm also raised its price target to $166 from $161, implying about 14% upside from Monday's closing price.

JPMorgan upgraded Corteva to overweight from neutral, and the stock rose nearly 3%.

JPMorgan set a $19 price target, implying 53% upside from Monday's closing price.

The bank said Corteva's greater focus on its crop chemicals business, combined with a recovery in agricultural commodity prices, could drive the stock higher.