US stock futures advanced across major benchmarks on Tuesday morning as market participants maintained their focus on corporate earnings reports and the sustained surge in artificial intelligence investments. The upward momentum persisted despite climbing bond yields and higher diesel fuel costs, with the benchmark 10-year Treasury note yield sitting at its highest close in nearly a quarter-century. Crude oil futures declined on Monday before edging higher in early Tuesday trading, with Federal Reserve meeting minutes scheduled for release on Wednesday.

Nasdaq-100 futures increased 0.1% following Monday's record-setting close for the Nasdaq Composite, a session in which technology heavyweights including Nvidia drove the benchmark higher. Futures tied to the Dow Jones Industrial Average edged up 0.1%, while S&P 500 contracts moved marginally into positive territory. The broad-market S&P 500 index remains within 1% of its all-time peak, according to CNBC's market coverage.

Bond Yields Climb to Levels Last Seen Decades Ago

Fixed-income markets captured investor attention throughout the week's trading, with long-dated maturities leading the move. The yield on the 10-year Treasury note touched 5.31% at Monday's close, representing its steepest finish in 24 years. The 30-year Treasury yield advanced to 5.66%, a threshold last breached in 2002. Long-dated Treasury yields function as reference rates for borrowing costs across the economy — from mortgages to corporate debt — which is why moves of this scale tend to draw scrutiny well beyond bond markets.

Market commentary outlet Coin Bureau flagged the breadth of the move across the US Treasury curve in an X post published on October 5:

ALERT: The US bond market is flashing a WARNING markets can't ignore. The 20-year Treasury yield just hit 5.735%, while the 30-year climbed to nearly 5.7%, both at their highest levels in roughly 24 years. The 10-year also touched 5.34%, another 24-year high. Long-term… pic.twitter.com/Rse09TfCJ0

— Coin Bureau (@coinbureau) October 5, 2026

The escalating yields have prompted caution among certain market participants, even as equity benchmarks maintain their upward trajectory after Monday's record-setting session.

In a client communication, Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, analyzed the recent bond market turbulence. She identified potential shifts in Federal Reserve policy frameworks, robust economic expansion, and elevated crude oil prices as key drivers. Shalett additionally highlighted geopolitical tensions in the Middle East as a persistent source of market instability, though she emphasized that present volatility levels remain well below the intensity observed during 2022's bear market selloff.

Artificial Intelligence Sector Drives Monday's Strength

Equities connected to artificial intelligence development posted solid gains throughout Monday's trading session. SpaceX shares surged more than 7%, while Nvidia (NVDA) and Tesla each recorded increases exceeding 2%. Meta Platforms and Microsoft similarly advanced, with each company adding more than 1%.

The broad-based strength followed impressive quarterly results announced by Taiwan-based manufacturing partner Foxconn, the trade name of Hon Hai Precision Industry Co. As one of the world's largest contract electronics manufacturers, Hon Hai is widely tracked as a gauge of global technology hardware demand, and its results underscored sustained worldwide appetite for AI-related hardware and infrastructure. Nvidia's total market capitalization now approaches the $6 trillion milestone.

Monday's session saw the Nasdaq Composite climb approximately 1% to establish a fresh closing record. The Dow Jones Industrial Average increased roughly 90 points, representing a 0.2% gain, while the S&P 500 advanced 0.7%.

Asian Markets, Oil and the Calendar Ahead

Asian delivered mixed results on Tuesday. Japan's Nikkei 225 index rose 0.29%, while South Korea's Kospi declined 0.23% and Australia's S&P/ASX 200 climbed 0.53%. Hong Kong's Hang Seng Index advanced 0.95%. Mainland Chinese exchanges remained shuttered for the Golden Week holiday observance.

Brent crude fell 1.9% on Monday to settle at $100.32 per barrel, and West Texas Intermediate crude decreased approximately 1.8% to finish at $89.43 per barrel. Energy futures showed modest gains in Tuesday morning trading. Diesel, heavily used in trucking and freight, passes its price moves directly into transportation and logistics costs — a channel behind the higher diesel expenses noted in the session.

Tuesday's corporate earnings calendar features quarterly reports from Constellation Brands, a beverage alcohol producer, and Lamb Weston Holdings, a supplier of frozen potato products, while the broader macroeconomic data calendar shows limited activity for the day. Market participants are anticipating Wednesday's publication of Federal Reserve minutes from the September policy meeting. The document may provide additional insight into the central bank's recent deliberations regarding interest rate policy, and it will land with equity benchmarks near record highs and long-term Treasury yields at multi-decade peaks — the same mix that has kept some investors cautious this week.

This article first appeared on Blockonomi.