U.S. stock futures rallied Tuesday as a recent selloff in government bonds paused and giant technology stocks recovered some ground.
Futures tied to the S&P 500 gained over 1%, suggesting that the broad market benchmark may climb after the New York opening bell. Dow Jones Industrial Average futures edged 0.4% higher. The blue-chips index notched a new intraday record on Monday.
Futures linked to the Nasdaq-100 rallied 1.8% Tuesday, indicating that technology shares are likely to rebound. The tech-heavy index and the broader Nasdaq Composite Index both fell into correction territory Monday, meaning that the gauges have declined more than 10% from recent highs.
Technology shares have come under pressure in recent weeks as a wave of selling in the bond market lifted Treasury yields. That led investors to question the high valuations that the technology sector is trading at following its steep climb in 2020.
The yield on the 10-year Treasurys ticked lower to 1.542% on Tuesday. It had ended the previous day at 1.594%, its highest level in over a year.