US futures edge lower under sustained pressure from bond markets
Investors are watching Fed minutes and earnings as the 10-year Treasury yield stays near 5.3% and Brent crude tops $100 a barrel.
- U.S. futures retreated Wednesday as sustained bond market pressure weighed on equities after oil prices climbed back above $100 per barrel, with S&P 500 futures dipping 0.1% from a record close.
- Treasury yields have surged to more than 20-year highs in recent weeks, driven by inflation concerns and the Federal Reserve's interest-rate path, with the 10-year yield rising to 5.33% and the 30-year climbing to 5.71%.
- Elevated yields threaten artificial intelligence stocks by raising borrowing costs, as high bond yields make it more expensive for companies to borrow and undercut prices for growth investments.
- Technology stocks led declines before the opening bell, with Micron Technology dropping more than 3% and Advanced Micro Devices declining nearly 2%, while Nasdaq futures fell 0.4%.
- The Federal Reserve will release September meeting minutes later this week when the central bank raised rates for the first time in three years, while earnings season begins with PepsiCo reporting Thursday and Delta Air Lines releasing results Friday.
22 Articles
22 Articles
The relief in the French debt Yields, which fell by about 10 basis points to close to 4.75%, helped to calm the nerves after the budgetary concerns in France and the convening of early elections in Spain. The German industrial production data of August and the French trade balance will be the main indicators of the day on the continent.
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US futures edge lower under sustained pressure from bond markets
U.S. futures are falling as the bond market continues to pressure stocks ahead of the release of the Federal Reserve’s latest minutes. Futures for the S&P 500 and Dow Jones Industrial Average both declined 0.2% on Monday. Nasdaq futures dropped…
TSX futures slip as oil, yields fuel rate-hike fears ahead of Fed minutes
Oct 7 (Reuters) - Futures tracking Canada's blue-chip stocks fell on Wednesday as elevated oil prices and climbing yields made investors risk averse, while markets awaited the minutes of the US Federal Reserve's September meeting later in the day.December futures for the S&P/TSX index were down 0.41% at 05:59 a.m. ET (0959 GMT).Brent crude futures climbed above $100 a barrel as higher energy prices continued to fan inflationary worries, clouding the global fiscal outlook and reinforcing expectations of a prolonged higher-interest-rate environmentYields on the US benchmark 10-year Treasury note inched higher while the 30-year Treasury note yield scaled its highest level since 2002, reflecting expectations that interest rates will remain higherMarkets are awaiting the minutes of the U.S. Federal Reserve's September meeting later on Wednesday for further clues on the monetary policy pathTraders expect the Federal Reserve to keep interest rates unchanged at its October meeting, while pricing in an 86% chance of a quarter-point rate hike in December, according to LSEG data.In Canada, investors are pricing in at least one 25 basis point hike by the Bank of Canada by year-end, according to data compiled by LSEGGold and silver slipped more than 1% as a stronger US dollar and higher yields weighed, further hurting risk appetite in the resource-heavy marketCanada's main stock index (.GSPTSE), opens new tab rose to an 11-day high on Tuesday, led by utilities (.GSPTTUT), opens new tab and metal mining shares (.GSPTTMT), opens new tabFOR CANADIAN MARKETS NEWS, CLICK ON CODES:TSX market reportCanadian dollar and bonds report CA/Reuters global stocks poll for Canada ,Canadian markets directory(This story has been refiled to add the dateline.)Reporting by Avinash P and Anand Gopal in Bengaluru; Editing by Tasim Zahid
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