1 day ago
US Stock Futures Fall as Oil and Yields Rise
US stock futures were lower on Wednesday.
This means investors expected some stock prices to open down.
Oil prices and interest rates on government bonds were rising.
Higher oil prices can make people worry that everyday costs will rise.
Investors were waiting for notes from the Federal Reserve’s September meeting.
Those notes could help show whether officials might raise interest rates again.
Markets in Europe and parts of Asia also fell.
The S&P 500 had reached a record high the day before.
US stock futures fell on Wednesday, October 7, after the S&P 500 closed at a record high the previous day.
Dow futures fell about 0.4%, S&P 500 futures slipped 0.2%, and Nasdaq-100 futures dropped around 0.4%.
The 10-year Treasury yield rose about 6 basis points to 5.326%, while the 30-year yield climbed nearly 7 basis points to 5.706%, its highest since 2002.
Oil prices extended gains, with Brent crude up about 1% to $101.92 a barrel and US crude nearing $90.
Investors awaited minutes from the Federal Reserve’s September meeting for clues about the interest-rate outlook.
- Who
- US stock futures, investors, and the Federal Reserve.
- What
- US stock futures fell as oil prices and Treasury yields rose ahead of the release of the Fed’s September meeting minutes.
- Where
- United States, with declines also reported in European and Asian markets.
- When
- Wednesday, October 7; the Fed minutes were due for release that day.
- Why
- Rising oil prices and bond yields weighed on sentiment, while investors awaited clues about the Fed’s interest-rate path.
Factors Pressuring Stocks
Factors Supporting Stocks
Oil and inflation concerns
Factors Pressuring Stocks
Rising oil prices could add to inflation concerns and strengthen expectations of tighter monetary policy, putting pressure on equities.
Factors Supporting Stocks
No opposing view on the effect of rising oil prices is stated in the article.
Treasury yields and market direction
Factors Pressuring Stocks
Treasury yields rose ahead of the Fed minutes, while US futures and major European and Asian markets declined.
Factors Supporting Stocks
The S&P 500 had closed at a record high the previous day, helped by chipmaker gains; easing Treasury yields had supported stocks earlier.
Key facts
- Dow futures
- Down about 0.4%
- S&P 500 futures
- Down 0.2%
- Nasdaq-100 futures
- Down around 0.4%
- 10-year Treasury yield
- Up about 6 basis points to 5.326%
- 30-year Treasury yield
- Up nearly 7 basis points to 5.706%, its highest level since 2002
- Brent crude
- Up about 1% to $101.92 a barrel
- Fed minutes
- Minutes from the September policy meeting were expected to offer clues on the interest-rate outlook
Sources
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