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Investors pause as Fed minutes and yields loom

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Wall Street futures showed little movement Sunday evening as investors await the Federal Reserve’s September meeting minutes and monitor Treasury yields at their highest level in over twenty years. The Dow Jones Industrial Average futures added 53 points, or 0.1%. S&P 500 futures rose 0.1%, while Nasdaq-100 futures climbed 0.2%.
U.S. stocks closed Friday with solid gains, buoyed by a technology-led rally. The Dow finished up 250 points, or 0.5%, at 51,176.46. The S&P 500 climbed 0.7% to 7,722.72, and the Nasdaq Composite surged 1.2% to 27,190.86 after hitting an intraday record. Nvidia also reached an all-time high during the session.
The market advance came after a lackluster jobs report eased fears of another interest rate hike this month. Despite that relief, the 10-year Treasury yield remains a primary concern for traders. Elevated borrowing costs continue to weigh on sentiment, even as the central bank holds rates steady in the near term.
Asian markets opened mixed early Monday. Japan's Nikkei 225 rose over 1.7%, and the broader Topix climbed 0.79%. Australia's S&P/ASX 200 gained 0.53%. Hong Kong shares dipped 0.32% as tech and consumer stocks declined. Markets in mainland China and South Korea remained closed for holidays. A recovery in Middle Eastern oil flows provided some underlying support to regional sentiment.
Tensions between the U.S. and Iran continue to shape market dynamics. Iranian parliament speaker Mohammad Bagher Ghalibaf stated the Strait of Hormuz would not reopen until conditions for ending the conflict with the U.S. were met. Separately, the U.S. Air Force pulled all B-1 bombers from a southern England air base following an investigation into a planned terror attack, the Associated Press reported.
Investors face a light economic schedule this week before the main earnings wave begins. The Institute for Supply Management releases its services activity report on Monday. The Federal Reserve will publish its September meeting minutes on Wednesday. The University of Michigan will release preliminary October consumer sentiment data on Friday. The earnings calendar includes Constellation Brands, Levi Strauss, PepsiCo, and Delta Air Lines this week, with JP Morgan set to kick off the official reporting season on October 13.
"The light data calendar means that the investors will be responding to the ebb and flow of geopolitical and market specific developments matched against the latest batch of reasonably supportive economic reports, all ahead of the unofficial start of the reporting season with JP Morgan's results on October 13," Gary Schlossberg, global strategist for Wells Fargo Investment Institute, said.