Wall St futures jump as Treasury yields retreat

(Reuters) - Wall Street futures jumped on Tuesday as retreating U.S. Treasury yields bolstered demand for stocks, while investors awaited clues on how much further the U.S. Federal Reserve would go with interest rate hikes to rein in surging prices.

Data on job openings and factory orders will be in focus before the market opens, a day after a report showing weaker-than-expected manufacturing activity raised investor hopes that rising rates were taming demand for goods, helping the main indexes stage a strong rebound.

However, Federal Reserve Bank of New York President John Williams argued on Monday that while there have been nascent signs of cooling inflation, underlying price pressures remain too high, which means the U.S. central bank must press forward.

The rebound in stocks on the first trading day of the final quarter follows the S&P 500's lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020 on fears the Fed's aggressive rate hikes will cause an economic downturn.

At 4:39 a.m. ET, Dow e-minis were up 367 points, or 1.24%, S&P 500 e-minis were up 54 points, or 1.46%, and Nasdaq 100 e-minis were up 203 points, or 1.8%.

Yield on the 10-year U.S. Treasury slipped to near two-week lows, lifting rate-sensitive growth stocks. Apple Inc, Microsoft Corp, Alphabet Inc and Nvidia Corp rose between 1.5% and 2.5%.

Rivian Automotive Inc jumped 7.2% after the electric vehicle maker said it produced 7,363 vehicles in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000.

Tesla Inc bounced back 3.1% from its steepest selloff in four months in the previous session that was triggered by disappointing quarterly vehicle deliveries.

(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)