Tech Rally Drives Stock Futures Higher Amid Bond Selloff

U.S. stock futures rose early Tuesday, building on a record-setting session for tech equities. As of 4:00 a.m. ET, Dow futures climbed 0.5%, while Nasdaq, S&P 500, and Russell 2000 futures each gained 0.2%. Retail sentiment on Stocktwits turned 'extremely bullish' for the SPDR S&P 500 ETF (SPY) and remained 'extremely bullish' for the Invesco QQQ Trust (QQQ), reflecting optimism in tech stocks.

The Nasdaq Composite closed at a record high Monday, led by gains in AI and semiconductor stocks. However, the rally coincided with a sharp bond-market selloff, with the 10-year Treasury yield reaching about 5.31% and the 30-year yield approaching 5.7%. Michael Burry warned of a 'denial' phase in the market, drawing parallels to 2000 and 2008, while Ray Dalio cautioned of a potential U.S. debt crisis within three years.

Key stocks in focus included Nvidia (NVDA), with Dan Ives reiterating its critical role in the AI revolution and BNP Paribas raising its price target to $345. Advanced Micro Devices (AMD) CEO Lisa Su indicated sustained demand for compute technology, while Oracle (ORCL) shares rose on reports of new voluntary severance packages. SpaceX (SPCX) continued its upward trend after news of a proposed Florida natural-gas pipeline to support Starship launches.

Economic data and Fed speeches will be closely watched Tuesday, including trade balance figures and remarks from Fed officials Michelle Bowman, Jeffrey Schmid, and Lorie Logan. President Donald Trump’s speech at an Anduril facility could also impact defense and drone stocks. Earnings reports from companies like Constellation Energy (CEG) and Lululemon (LULU) will provide additional market insights.