Stock index futures opened the week with mixed results on Monday as traders kept a close eye on Treasury yields and oil prices.

Later this week, the Federal Reserve will release the minutes from its latest policy meeting, and ahead of that, traders are watching U.S. Treasury yields and international oil price movements closely.

Dow Jones Industrial Average futures edged up 0.1% (46 points); S&P 500 futures were essentially flat; Nasdaq 100 futures fell more than 0.1%.

The benchmark 10-year Treasury yield held steady at 5.277%, while the 30-year Treasury yield stood at 5.63%, also little changed. Over the past several weeks, both yields had climbed to multi-year highs, fueling market concerns that inflation could keep the Fed holding rates high for an extended period.

Last month, the Fed raised its overnight policy rate by 0.25 percentage points. After the September meeting minutes are released on Wednesday, investors will gain deeper insight into the discussions behind that rate hike decision.

Meanwhile, oil prices were mixed on Monday. Brent crude rose 0.3% to $102.67 per barrel; U.S. WTI crude fell about 0.6% to $88.92 per barrel.

Investors will also be watching the U.S. Institute for Supply Management (ISM) services activity report on Monday.

In the week just past, the dominant market theme was surging Treasury yields; however, an unexpectedly weak nonfarm payrolls report somewhat eased market worries about another Fed rate hike this month. After a week of pressure from steadily rising bond yields, that employment data offered the market a brief respite.

Citi strategist Beata Manthey wrote in a research note: "Despite growing headwinds (such as geopolitical conflicts and the high-rate environment), global stocks have gained about 12% year to date, just shy of record highs. Does this relatively calm picture mean equity fundamentals can withstand continued macro shocks, or will stocks eventually pull back and more accurately reflect the current risk environment? While uncertainty remains high, for now we lean toward the view that the market is resilient."

DBS CIO: AI Tech Stocks Far From Bubble Territory

DBS Group Chief Investment Officer Hou Wey Fook said that Nvidia's (NVDA.US) price-to-earnings ratio and its projected 70% earnings growth next year indicate that artificial intelligence (AI)-driven tech stocks are far from entering bubble territory. Data shows Nvidia currently trades at about 17 times its expected earnings over the next 12 months. Hou compared this valuation with Cisco's (CSCO.US) 100x valuation before the dot-com bubble burst. "If the benchmark company of the AI trade is valued at only the low teens, how can you call it a bubble?" he said in an interview, adding that semiconductors and AI still have "tailwinds" in this cycle. Still, Hou advocates a "barbell" strategy to "control overall portfolio volatility": combining growth tech stocks with investment-grade fixed income to achieve stable returns, while using hedge funds and gold as risk diversification tools in between. In terms of market performance, Nvidia shares hit a record intraday high on Friday, coming within striking distance of becoming the first listed company to surpass a $6 trillion market capitalization. Nvidia is up about 25% year to date, with a current market value of roughly $5.6 trillion.

Stocks in Focus

Brazil's right-wing presidential candidate narrowly defeated incumbent President Lula by about 2 percentage points in Sunday's election, sending Brazil-related stocks broadly higher. The iShares MSCI Brazil ETF (EWZ) surged 12%; U.S.-listed Itaú Unibanco (ITUB) and Banco Bradesco (BBD) both surged more than 13%.

Software company PTC agreed to be acquired by Schneider Electric at $205 per share, valuing the company's equity at more than $22 billion. The stock jumped 36% on the news. The deal is expected to close in the third quarter of 2027.

Morgan Stanley upgraded Wells Fargo to Buy, and the stock rose 1%. Analyst Manan Gosalia said in a research note: "A return to normal balance sheet growth will ease funding pressure, stabilize the net interest margin, and give us greater confidence that the bank can achieve higher returns."

Bank of America upgraded digital sports entertainment and betting company DraftKings from Neutral to Buy, and the stock rose more than 5%. BofA analyst Julie Hoover said the company's newly launched prediction markets business is a "win-win business," expected to generate $400 million in fee revenue in 2027, with market-making revenue reaching $200 million to $400 million.

Barclays upgraded Estée Lauder from Equal Weight to Overweight, and the stock rose 2.8%. The bank is upbeat on Estée Lauder's growth prospects and earnings performance over the next several years.

Citi upgraded Harley-Davidson from Neutral to Buy, and the stock rose 5.7%. Citi said the company showed only modest improvement in retail earlier this year; however, going forward, the motorcycle maker will benefit from major new product launches, cost savings, and a potential earnings boost from its LiveWire electric motorcycle business.

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