U.S. stock futures were essentially flat late Wednesday as investors weighed a pullback in equity markets against rising Treasury yields and a renewed jump in global oil prices. The calm in futures came after Wall Street's major indexes closed lower, with traders awaiting a pair of critical inflation reports that may influence the Federal Reserve's next policy move.
Futures snapshot - By 8:33 p.m. ET (00:33 GMT), S&P 500 futures were up 0.1% at 7,654.50, while Nasdaq 100 futures also gained 0.1% to 29,472.75. Dow Jones futures climbed 0.2% to 52,535.0. Those modest after-hours moves followed a broad-based decline during the regular session.
Equity losses during the day - In cash trading, the Dow Jones Industrial Average fell 0.8%, the S&P 500 declined 0.5%, and the Nasdaq Composite dropped 0.6%, marking the third consecutive session of losses for the major U.S. stock benchmarks.
Energy pressures and geopolitics - A key driver of market caution was the rebound in oil, with Brent crude settling above $100 a barrel for the first time since July. In Asian trading on Thursday, Brent reached $101.37 a barrel as heightened U.S.-Iran tensions stoked concerns about potential disruptions to supplies transiting the Strait of Hormuz. The move higher in energy prices has revived worries that an extended period of elevated oil costs could keep inflation sticky and complicate the Fed's path back toward easing monetary policy.
Bond market dynamics - The benchmark 10-year U.S. Treasury yield climbed to 4.84%, its highest reading since November 2023, while the 30-year yield moved up to about 5.29%. The recent uptick in yields persisted despite a Treasury Department announcement of a $6 billion buyback program for longer-dated government debt, a measure that failed to reverse the upward pressure on yields. Investors cited ongoing concerns over inflation, the scale of government borrowing, and the prospect of higher interest rates.
Inflation data in focus - Market attention is now squarely on the two major inflation reports due this week. The Producer Price Index arrives Thursday and is the first of those readings; the Consumer Price Index follows on Friday. These reports carry added significance given market expectations that at least one Fed rate hike could still occur this year. Traders are pricing in a roughly 60% chance of a rate increase at the Federal Open Market Committee meeting scheduled for Sept. 15-16.
Corporate spotlight - Apple - Apple was in the spotlight after unveiling its first foldable iPhone, the iPhone Duo, at what was described as the company's first major product event under its new chief executive. The company also revealed the iPhone 18 Pro and Pro Max, with starting prices $100 higher than their predecessors. Despite the foldable phone's debut and the refreshed Pro models, Apple shares finished the regular session down 0.3%; the stock was trading about 0.6% higher in after-hours activity.
With inflation prints imminent and energy and bond markets showing renewed volatility, investors are poised for data-driven moves that could reshape expectations for monetary policy and market valuations in the near term.
Data table - Selected levels mentioned
- S&P 500 futures: 7,654.50 (+0.1%)
- Nasdaq 100 futures: 29,472.75 (+0.1%)
- Dow Jones futures: 52,535.0 (+0.2%)
- Brent crude (Asian trading): $101.37 per barrel
- 10-year Treasury yield: 4.84%
- 30-year Treasury yield: ~5.29%