1 week ago
Wall Street Futures Rebound as Bond Yields Stabilize, Oil Rises
US stock futures were mixed in reports covering Thursday and Friday, both dated 20 August.
One report said futures were rising as markets tried to recover from a sell-off.
Another said futures were nearly flat because investors were still worried about oil and bond yields.
Bond yields rose sharply after falling earlier, making borrowing more expensive.
The US Treasury planned to buy more long-term government bonds to calm the bond market.
However, investors still worried about US debt, inflation and government deficits.
Oil prices stayed high because the United States and Iran were in a tense dispute involving sanctions and the Strait of Hormuz.
Walmart shares fell after giving a cautious yearly outlook.
Bitcoin rose above $70,000 after President Donald Trump met cryptocurrency industry leaders.
One report described Friday, 20 August, futures rising, with S&P 500 futures up 0.3%, Dow futures up 0.3% and Nasdaq-100 futures up 0.6%.
Another report described Thursday, 20 August, futures as mostly flat, with Dow and Nasdaq-100 futures down 0.1% and S&P 500 futures unchanged.
The contrasting reports followed a sell-off linked to Treasury yields rising more than five basis points in the previous session.
The US Treasury at least doubled planned purchases of longer-term government debt, but investors remained concerned about deficits, inflation and debt-management uncertainty.
Brent crude traded between about $92 and $94.34 a barrel as US-Iran tensions and threats of economic isolation supported oil prices.
- Who
- US investors, the United States Department of the Treasury, Treasury Secretary Scott Bessent, President Donald Trump, Iran, Walmart and other market participants.
- What
- US stock futures moved from mostly flat to higher in the reports, as markets reacted to Treasury yields, oil prices, government debt concerns and US-Iran tensions.
- Where
- US financial markets, with related developments involving US Treasury markets, Iran and the Strait of Hormuz.
- When
- The reports refer to Thursday and Friday, both dated 20 August, following a Wednesday session in which major US stock indexes rose.
- Why
- Investors were responding to changing Treasury yields, concerns about inflation and US deficits, the Treasury's bond-buyback plans, elevated oil prices and tensions between the United States and Iran.
Temporary Market Relief
Persistent Financial Risks
Treasury bond purchases
Temporary Market Relief
The larger buyback programme caused Treasury yields to pull back sharply in the previous session and helped US stocks finish higher.
Persistent Financial Risks
Market participants warned that uncertainty over the Treasury's debt-management strategy, along with weaker demand for US Treasuries, could contribute to higher borrowing costs.
US fiscal outlook
Temporary Market Relief
Government action to support the bond market may provide temporary relief for investors and reduce immediate market pressure.
Persistent Financial Risks
Investors remained concerned about the more than $40 trillion national debt, widening deficits, inflation, increased defence spending and deeper US involvement in the Middle East.
US-Iran measures and oil
Temporary Market Relief
The United States presented economic isolation and sanctions as pressure on Iran over the dispute involving Iranian ports and the Strait of Hormuz.
Persistent Financial Risks
Iran rejected Trump's threats, while the standoff and possible sanctions contributed to elevated crude prices and increased uncertainty for markets.
Key facts
- S&P 500 futures
- Reported up 0.3% in Friday trading and largely unchanged in the Thursday report.
- Dow Jones futures
- Reported up 0.3% on Friday and down 0.1% on Thursday.
- Nasdaq-100 futures
- Reported up 0.6% on Friday and down 0.1% on Thursday.
- Treasury yields
- The 10-year and 30-year yields rose by more than five basis points during Thursday's sell-off; the 30-year yield was also reported up three basis points to 5.2256%.
- US Treasury buybacks
- The Treasury at least doubled planned purchases of longer-term government debt, with Scott Bessent saying the programme could be expanded further.
- Brent crude
- Reported at about $92 a barrel in one account and $94.34 a barrel in the other, extending a multi-session rally.
- US national debt
- The reports said it had surpassed $40 trillion.
- Walmart shares
- Fell more than 6% in pre-market trading after the company issued a cautious annual outlook.
Quotes
US President Donald Trump
President of the United States
“"tremendous" consequences would be faced by any country doing business with Iran or providing financial assistance to Tehran in any form”
livemint.com
“"most crushing economic operation ever taken against any country"”
livemint.com
Sources
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