U.S. stock futures are trading with little change in early Thursday action, as major averages seek to build on Wednesday’s gains that ended a three-day losing streak. Investors are closely watching Treasury yields, which have been elevated, and ongoing geopolitical developments in the Middle East. The S&P 500 futures are flat, Dow futures are slightly up, and Nasdaq 100 futures are down.
On Wednesday, the Dow Jones Industrial Average surged nearly 300 points, while the S&P 500 and Nasdaq Composite also closed higher. The bond market saw the 10-year Treasury yield briefly touch its highest level since November 2023, adding to market concerns, although yields have since eased slightly. Key economic data, including jobless claims and the August payrolls report, are on the horizon.
U.S. equity futures showed little movement in early trading on Thursday, following a session where major stock averages managed to break a three-day losing streak. The recent market jitters were fueled by rising Treasury yields and ongoing geopolitical tensions involving the U.S. and Iran.
S&P 500 futures were flat, while Dow futures nudged up by 78 points, or 0.15%. Nasdaq 100 futures, however, saw a slight dip of 0.05%.
On Wednesday, the broader market closed higher, with the Dow Jones Industrial Average gaining nearly 300 points (approximately 0.6%). The S&P 500 and the Nasdaq Composite both advanced by 0.5%, signaling a temporary respite for investors.
Asian markets presented a mixed picture. Japan's Nikkei 225 declined by 0.17%, while South Korea's Kopsi rose by 0.26%. Australia's S&P/ASX 200 saw a gain of 0.46%, and China's CSI 300 added 0.1%.
The bond market continued to be a key focus. The 2-year Treasury yield touched 4.41% on Wednesday, its highest since January 2025. The 10-year Treasury yield briefly hit 4.818%, a level not seen since November 2023, before retreating slightly. Oil prices experienced modest gains, with West Texas Intermediate futures closing just above $91 a barrel, up 0.9%.
New York Federal Reserve President John Williams attributed the rise in Treasury yields to strong economic prospects, citing record corporate profits and significant investments in AI and technology. He suggested that the robust economy is influencing financial conditions, rather than the other way around.
Earlier in the week, market sentiment was impacted by renewed hostilities between the U.S. and Iran, with U.S. officials transitioning towards economic sanctions after initial military exchanges.
Traders are now looking ahead to weekly jobless claims data on Thursday, with the main economic event being Friday's August payrolls report.
Key corporate earnings reports are expected today from Ciena and Campbell's in the morning, followed by Zscaler, Docusign, and UiPath in the afternoon.
Europe markets open mixed
European markets traded with mixed results in early Thursday trading. Germany's DAX index edged up 0.1%, while the U.K.'s FTSE 100 and France's CAC 40 experienced slight declines. Telecoms stocks showed strength, gaining 0.64%, while household goods sectors faced pressure, falling 1.04%.
Asia-Pacific markets close mixed
The Asia-Pacific region concluded its trading session with mixed outcomes. Japan's Nikkei 225 fell 0.17%, while the Topix added 0.5%. South Korea's Kopsi saw a rise of 0.26%, contrasting with a decline in the Kosdaq. Australia's S&P/ASX 200 closed higher by 0.46%, and China's CSI 300 posted a modest gain of 0.1%. Hong Kong's Hang Seng lost 0.48%.
Yen jumps against U.S. dollar
The Japanese yen experienced a significant surge, jumping approximately 1% against the U.S. dollar and reaching a four-month high of 156.75 per dollar. This movement occurs as traders watch for potential intervention to support the yen, following a joint intervention by the U.S. and Japan in late July. U.S. Treasury Secretary Scott Bessent previously expressed his belief that the Japanese government and the Bank of Japan would take measures to strengthen the yen.
Treasury yields ease after 10-year hits highest level since November 2023
The 10-year U.S. Treasury yield saw a slight decrease on Thursday, trading down nearly 2 basis points at 4.776%. This follows a significant rise on Wednesday, where the yield reached its highest point since November 2023 at 4.818%, driven by inflation concerns and global debt pressures. The 30-year Treasury yield also eased, as did the 2-year note yield.
Oil little changed as traders assess Iran-U.S. military strikes
Oil prices remained relatively stable on Thursday, with traders evaluating the latest developments in the Middle East. Brent crude futures for November delivery were flat, while U.S. West Texas Intermediate futures for October saw a slight increase. The ongoing tensions in the region, including reports of hostile attacks from Iran, continue to be a key factor influencing energy markets. Analysts note that any significant disruptions to shipping lanes could lead to price increases.
Japanese yen strengthens with focus on Bank of Japan's policy move
The Japanese yen continued its upward trend, strengthening further on Thursday. This follows recent appreciation and renewed focus on the Bank of Japan's upcoming monetary policy meeting. U.S. Treasury officials have previously urged the Bank of Japan to implement sound monetary policy to manage inflation expectations and curb excessive yen volatility.
South Korea's Kospi rises, Japan's Nikkei 225 opens flat
Asia-Pacific markets opened on a mixed note. South Korea's Kospi advanced, while the Kosdaq experienced a slight decline. Japan's Nikkei 225 was largely unchanged, although the Topix saw an increase. Australia's S&P/ASX 200 also showed a minor gain in early trading.
Asia-Pacific markets set for subdued open as global bond rout, Mideast crisis dent sentiment
A subdued opening was anticipated for Asia-Pacific markets on Thursday, influenced by a global bond sell-off and heightened geopolitical concerns stemming from the Middle East. Futures for key Asian indices indicated a cautious start, reflecting broader market anxieties.
Broadcom pares back losses after 5% after-hours dip
Shares of chipmaker Broadcom experienced a significant recovery in after-hours trading, erasing initial losses of up to 5% following its earnings report. The company's revenue forecast for the fourth quarter slightly missed estimates, and its projected operating margin also fell short of Wall Street expectations.
Stocks making the biggest moves in after-hours trading
Several companies saw notable stock movements after Wednesday's market close. Snowflake surged over 20% after its second-quarter results surpassed expectations. Hewlett Packard Enterprise declined approximately 4% despite projecting solid earnings growth for the fiscal year. Petco jumped nearly 9% on the back of improved adjusted EBITDA margin performance.
Stock futures open little changed
U.S. stock futures indicated a flat opening for the major averages on Wednesday evening, suggesting a continuation of the cautious sentiment observed in the preceding trading sessions.
