U.S. stock futures rose slightly on Tuesday, boosted by a drop in Treasury yields, as Wall Street assessed the impact and risks of a prolonged conflict by the War between Israel and Hamas.
Dow Jones Industrial Average Futures gained 63 points, or 0.2%. S&P 500 and Nasdaq 100 Futures also rose about 0.2%.
PepsiCo Shares rose about 1.5% in premarket after the beverage and snack maker reported Third quarter results better than expected. The company also raised its earnings outlook.
The benchmark 10-year Treasury yield fell about 8 basis points to 4.703% as investors turned to the traditional safe haven amid the conflict. Falling yields gave a boost to stock futures as Wall Street had been concerned about the recent rapid rise in interest rates.
Oil prices also fell after the previous session's rally. West Texas Intermediate and Brent futures fell about 0.4%.
The Hamas attack on Israel marks the deadliest offensive in 50 years. At least 900 people in Israel have been killed so far in what Hamas calls Operation Al Aqsa Floodwith more than 687 people in Gaza and the West Bank killed in Israeli retaliatory strikes across the Gaza Strip, according to the latest figures.
Hamas is a designated terrorist group backed by Iran that has ruled the Gaza Strip since 2007.
"Of course, this will send some jitters through the markets. But what we've seen over time is that typically, the long-term impact of geopolitical events tends to be somewhat contained," Meera Pandit, global market strategist at JPMorgan Asset Management. , he said on CNBC "Closing bell" on Monday.
During Monday's trading session, stocks were initially lower (the Nasdaq fell more than 1% during its session lows) before turning positive across the board. The Dow Jones, made up of 30 stocks, added 197 points, or 0.6%, while the Nasdaq Composite gained 0.4%. The S&P 500 added 0.6%.
