US Futures Retreat as Oil and Yields Surge
US equity futures declined on Wednesday, one day after the S&P 500 set a new record close above 7,800. Futures tied to the Dow Jones Industrial Average dropped 403 points, or 0.8%, while S&P 500 futures lost 0.5% and Nasdaq-100 futures fell 0.8%. The pullback came as oil prices moved higher and Treasury yields resumed their recent climb.[S1][S2][S4]
U.S. crude moved back up toward the $90-a-barrel mark, while Brent futures abroad gained close to 1% to trade near $101 a barrel. That pushed yields higher again after they had paused in the prior session. The 10-year Treasury note yield added over 6 basis points, reaching 5.337%, and the 30-year bond yield picked up more than 7 basis points to 5.716%.[S1][S4]
Fed Minutes and Treasury Auction in Focus
Market participants are looking ahead to the release of the Federal Reserve's September meeting minutes, a gathering at which the central bank lifted rates for the first time since 2023. Those minutes should shed light on how officials are reading the state of the economy. Separately, the Treasury plans to sell $39 billion in 10-year notes on Wednesday.[S1][S4]
Global Markets Slide
Across Europe, the Stoxx 600 dropped 0.8%, as the UK's FTSE 100 lost 0.7%, France's CAC 40 shed 1%, Germany's DAX declined 1.3% and Italy's FTSE MIB slid 1.9%. In Asia, Japan's Nikkei 225 finished 0.92% lower and the Topix was down 0.7%. South Korea's Kospi fell almost 2% and the Kosdaq gave up 2.34%. Australia's S&P/ASX 200 closed little changed, while mainland Chinese trading stayed shut for Golden Week.[S1]
