- US stock futures are pointing slightly lower this morning, with contracts tied to the S&P 500 and Nasdaq-100 under pressure as investors weigh higher borrowing costs and a cooler jobs backdrop.
- Futures on the Dow Jones Industrial Average and on the S&P 500 both fell around 0.4%.
- Contracts for the tech-heavy Nasdaq-100 dropped 0.5%.
- Big Tech stocks were under pressure on Thursday morning, led by declines in shares of Alphabet and Tesla after the two "Magnificent Seven" heavyweights reported results after Wednesday's market close.
- The latest escalation in the Middle East shows no signs of relenting, and oil prices continued to climb on Thursday.
- Brent crude oil futures, the international benchmark, jumped to $97 per barrel, closing in on crossing the key $100 level.
- West Texas Intermediate futures, the US benchmark, rose to $89 per barrel after Iran-backed Houthis said they had attacked tankers in the Red Sea.
- The US 10 year Treasury yield is holding near 4.63%, which means mortgages, car loans and business financing are staying expensive.
- A payrolls report showing ADP private hiring at about 16,500 jobs per week signals the job market is losing some steam.
- With higher oil prices linked to Middle East tensions, the focus turns to whether rate sensitive areas like banks, real estate and smaller US companies can handle both pricier debt and slower growth.
- As the US-Iran war has widened, rising oil prices spurred a rise in Treasury yields to their highest levels since May amid renewed inflation concerns.
- The latest pressure from oil has pushed back against easing bets that the Federal Reserve would hike interest rates this year.
US stock futures fell on Thursday, with the S&P 500 and Nasdaq-100 down 0.4% and 0.5%, respectively, as investors reacted to higher oil prices linked to escalating tensions in the Middle East and cooling job market indicators.1235
The US 10-year Treasury yield remains near 4.63%, indicating that borrowing costs for mortgages, car loans, and business financing are still high. A recent payrolls report showed ADP private hiring at about 16,500 jobs per week, suggesting the job market is losing momentum.89
With oil prices surging—Brent crude nearing $100 per barrel and West Texas Intermediate at $89—investors are concerned about the impact on rate-sensitive sectors like banks and real estate. The latest escalation in the Middle East has exacerbated these worries, pushing Treasury yields to their highest levels since May amid renewed inflation concerns.6
Additionally, Big Tech stocks faced pressure following disappointing earnings from Alphabet and Tesla, with the latter's CEO highlighting a focus on future innovations. The market is now prioritizing resilience as it navigates these challenges.4
“The 10-year Treasury yield held near 4.63%, keeping borrowing costs high, while ADP private hiring slowed to about 16,500 jobs per week. Brent crude jumped to $97 a barrel after Houthi attacks on Red Sea tankers intensified, fueling inflation worries that dimmed hopes for Fed rate cuts.”
simplywall.st
Yahoo Finance
