Stock index futures rose sharply on Monday, with Nasdaq futures leading the pack, as traders geared up for the big tech earnings reports set to be released in the week.

S&P 500 futures (SPX) +0.6%, Nasdaq 100 futures (US100:IND) +0.9% and Dow futures (INDU) +0.4%.

The 10-year Treasury yield (US10Y) rose 2 basis points to 4.27%. The 2-year yield (US2Y) was flat at 4.13%.

Wall Street's tech-heavy Nasdaq Composite index on Friday hit a new record intraday high for the first time since July.

"For markets, the positive mood that dominated so far this autumn saw a mini-scare last week, as the S&P 500 fell for the first time in six weeks, while the bond sell-off continued apace," Deutsche Bank's Peter Sidorov said.

On the earnings front, mega companies are set to report over the week, including Alphabet (GOOG) (GOOGL), PayPal (PYPL), Visa (V) on Tuesday, Microsoft (MSFT), Meta Platforms (META) on Wednesday, Apple (AAPL) and Amazon (AMZN) on Thursday, among others.

"There’ll be plenty to test the market nerves with this week's bumper set of data releases, including U.S. payrolls on Friday, and earnings reports, with five of the Magnificent 7 reporting. Meanwhile, the tight U.S. election campaign will enter its final stretch," Sidorov added.

Market sentiments were also helped after geopolitical tensions eased over the weekend. Israel's weekend strike on Iran steered clear of oil and nuclear infrastructure.

Oil futures had also slid more than 4% on Monday.

"Israel’s military strikes against Iran over the weekend focused on military targets. This has allowed oil prices to drop," UBS' Paul Donovan said.