U.S. index futures rose in premarket trading on Tuesday, suggesting a rebound after earlier declines caused by rising bond yields and oil prices. Investors await key economic data this week amid statements from Federal Reserve leaders.

At 5:48 AM ET, Dow Jones (DOWI:DJI) futures rose 62 points or 0.15%. S&P 500 futures gained 0.37%, and Nasdaq-100 futures advanced 0.42%. The 10-year Treasury yield was at 4.016%.

In commodities, West Texas Intermediate crude for November fell 1.91% to $75.67 per barrel, while Brent for December dropped 1.84% to $79.44 per barrel.

Oil prices fell as traders took profits despite a recent rally driven by fears of a regional war in the Middle East. The previous rally was fueled by concerns about oil supply disruptions due to escalating conflict.

The National Development Commission remains confident in its annual goals despite concerns about reduced demand in China. In the U.S., Hurricane Milton shut down a platform in the Gulf of Mexico, and investors await oil inventory data, expecting a 1.9 million barrel increase by October 4.

Iron ore and base metal prices fell after a briefing by China’s National Development and Reform Commission offered no new promises of economic stimulus. Investors had hoped for more measures after a holiday, but disappointment led to sell-offs, reflecting concerns over the economic recovery.

On today’s U.S. economic agenda, at 3 AM ET, Fed Governor Adriana Kugler spoke in Europe, emphasizing that the U.S. central bank must remain focused on reducing inflation to 2% while avoiding an economic slowdown. She supports further rate cuts if inflation continues to improve.

The NFIB’s September optimism index will be released at 6 AM ET, with a forecast of 91.6. The U.S. trade deficit for August will be announced at 8:30 AM ET, with expectations of -$70.8 billion. At 12:45 PM ET, Atlanta Fed President Raphael Bostic speaks, followed by Federal Reserve Vice Chair Philip Jefferson at 7:30 PM ET.

Asia-Pacific markets closed mostly lower. Mainland China stocks returned from a holiday with a strong initial rally, driven by expectations of economic stimulus, but lost momentum. The lack of concrete details from Beijing disappointed investors. China’s CSI 300 closed up 5.93%, while the Hang Seng dropped 9% in the final hour of trading, reflecting profit-taking and a lack of new stimulus measures.

Japan’s Nikkei 225 fell 1%, with the Topix declining 1.47%. South Korea’s Kospi dropped 0.61%, while the Kosdaq lost 0.35%. Australia’s S&P/ASX 200 fell 0.35%.

Zheng Shanjie, president of China’s National Development and Reform Commission, stated that the country would accelerate the issuance of special bonds to support regional economies and announce a 100 billion yuan investment plan. However, without significant new stimulus, investors were disappointed, affecting the Chinese market.

In the U.S., investors directed $5.2 billion into China-focused ETFs during the country’s Golden Week holiday, spurred by Beijing’s stimulus packages, such as interest rate cuts and bank liquidity. The weekly inflow surpassed the average outflow of $83 million in 2024, generating optimism about economic recovery.

China’s recent actions to revitalize the real estate market resulted in an immediate increase in sales and buyer interest during the holiday. However, the sustainability of this recovery remains uncertain. Showroom visitors increased by 50% compared to last year, but developer stocks fell due to the lack of new measures in economic planning.

According to a Reuters poll, South Korea’s central bank is expected to cut its interest rate by 25 basis points to 3.25% on Friday, as inflation dropped to 1.6%. Economists predict this will be the only rate cut of the year, as the bank remains concerned about rising debt and financial stability in the housing market.

In Japan, inflation-adjusted wages fell 0.6% in August, while household spending also decreased by 1.9%. Base pay rose 3.0% compared to August 2023, and bonus payments increased by 2.7%.

Saudi Arabia’s sovereign wealth fund sold its stake in Nintendo, reducing it from 8.58% to 7.54%, despite an executive previously suggesting the possibility of increasing investment. The sale occurred between August 21 and October 1, as the government seeks to diversify its economy by investing in gaming companies.

Hyundai Motor India’s IPO will open for subscriptions on October 14, with a price range of 1,865 to 1,960 rupees per share, valuing the company at up to $19 billion. This $3 billion IPO marks Hyundai’s first listing outside South Korea and the first automaker to go public in India in two decades.

European markets are trading lower on Tuesday, with investors concerned about the impact of Middle Eastern conflict on oil prices, supply chains, and the global economy. Markets will also be watching for statements from European Central Bank and Federal Reserve officials and the release of Germany’s industrial production data for August.

The UK may ease market access for specialized trading houses without retail deposits, according to the head of the Financial Conduct Authority. The regulator seeks to promote wholesale trading and increase liquidity while simplifying the fundraising process for listed companies.

Mining and domestic goods sectors are among the most affected, while luxury stocks also fell due to uncertainty over Chinese demand.

Among individual stocks, Vistry Group Plc (LSE:VTY) faces its biggest drop in eight years after announcing that its adjusted profit would be £80 million lower than expected. The company identified cost underestimation in one of its divisions and launched an independent review, with shares down about 29%.

Shares of European distilleries fell after China announced anti-dumping tariffs on EU cognac, heightening trade tensions. Remy Cointreau (EU:RCO) dropped up to 8.6%, Pernod Ricard (EU:RI) 4.3%, and LVMH (EU:MC) as much as 4.8%. The decision follows EU tariffs on Chinese electric vehicles.

Shares of Siemens (TG:SIE) fell around 1.6% after announcing the acquisition of Denmark-based Danfoss Fire Safety to expand its sustainable portfolio. The subsidiary will integrate into Siemens’ smart infrastructure division. The company will continue to operate independently, with the transaction expected to close by the end of 2024.

On Monday, U.S. markets closed lower, impacted by geopolitical uncertainty in the Middle East. The Dow lost 0.94%, the S&P 500 fell 0.56%, and the Nasdaq dropped 1.18%. The dollar hit a seven-week high against the yen, driven by strong U.S. job data, which reinforced economic resilience but reduced expectations for aggressive Federal Reserve rate cuts. Consumer credit in August rose less than expected, increasing by $8.9 billion, below the forecast of $12 billion.

John Williams, president of the New York Federal Reserve, stated that reducing rates “over time” would be appropriate following the half-point cut in September, noting that current monetary policy is well-calibrated.

Alberto Musalem, president of the St. Louis Federal Reserve, also supports gradual rate cuts, emphasizing the need for caution to avoid excess in easing. He expects inflation to return to 2% soon and considers the labor market consistent with a strong economy.

Quarterly reports from PepsiCo  (NASDAQ:PEP) and Accolade  (NASDAQ:ACCD) are expected before the market opens.

After the close, Saratoga Investment Corp  (NYSE:SAR) will release its numbers.