U.S. Stock Futures Rise as Lower Oil Prices Offset Bond Market Selloff
Opening Bell: Key Catalysts Set to Move Markets Friday
U.S. stock futures edged higher: Dow futures rose 0.3%, S&P 500 futures gained 0.3%, and Nasdaq 100 futures advanced 0.6%.
Lower oil prices eased investor concerns after a sharp rise in Treasury yields unsettled markets earlier in the week.
Bond yields remained elevated: The 10-year Treasury yield reached 5.2%, its highest level since 2007, while the 30-year yield hit its highest point since 2004.
Rate-hike expectations increased: Markets priced in a 71% chance of at least a 25-basis-point Fed rate hike in October, up from roughly 50% earlier in the week. Investors will closely monitor upcoming employment and inflation data for clues about the Federal Reserve’s future rate-hike path.
Stronger-than-expected figures could raise expectations for more aggressive monetary tightening, potentially weighing on U.S. stocks.
Major equity indexes remain near record highs, with the S&P 500 just over 1% below its mid-August peak.
Technology and artificial-intelligence stocks continue to support the broader market rally.
The monthly U.S. employment report, scheduled for October 2, is expected to be the week’s most important release.
Investors will also focus on a key inflation indicator to assess whether price pressures are easing.
The Federal Reserve began raising interest rates this month for the first time in three years as it works to contain elevated inflation.
Markets are now weighing whether the data will justify a sharper pace of rate increases, which could challenge the stock market’s rally.
AI optimism supported technology stocks: AMD, Marvell, Cerebras, and Intel each gained about 2% in premarket trading, while Nvidia and Tesla also edged higher.
Akamai Technologies surged 21% after announcing an $11.6 billion cloud services agreement with AI company Anthropic.
Meta remained near record valuation levels and was on track for a fifth consecutive weekly gain, bringing it close to a $2 trillion market capitalization.
Oil prices stayed above $100 a barrel, limiting broader market gains despite hopes for a potential phased U.S.-Iran agreement involving the Strait of Hormuz.
Geopolitical risks remained elevated following conflicts involving Iran, Ukraine, and a reported Houthi missile attack on Saudi Arabia.
Tesla began high-volume production of its electric Semi truck at its Nevada facility, targeting annual output of 50,000 vehicles.
Gold remained on track for a weekly decline as a stronger dollar and expectations of further Fed tightening weighed on prices.
Bitcoin edged higher but remained under pressure from rising Treasury yields and concerns surrounding a major hack targeting crypto exchange Bitget.