U.S. Market Rebounds as Investors Eye Inflation and Earnings

U.S. stock index futures rallied Tuesday following a previous selloff, with investor focus shifting to upcoming inflation data and third-quarter earnings. Treasury yields slightly retreated, with the Federal Reserve's interest rate path under scrutiny. Volatility remains high amid economic and geopolitical tensions.

On Tuesday, U.S. stock index futures rebounded after a selloff, with investors' attention turning to key inflation data and third-quarter earnings expected later this week. The fresh data is anticipated to provide insights into the Federal Reserve's trajectory on interest rates.

Major indexes dropped around 1% on Monday, influenced by rising Treasury yields and escalating Middle East conflicts. Meanwhile, the CBOE Volatility Index, though retreating, remained near a one-month high, underscoring the market's nervousness.

Market analysts suggest that stronger-than-expected inflation figures could unsettle the markets again, as traders continue to keep a close watch on Federal Reserve officials' statements regarding future rate adjustments.

(With inputs from agencies.)