U.S. Stock Futures Fall as Treasury Yields and Oil Prices Rise: Dow Jones, S&P, Nasdaq, Wall Street

U.S. stock futures pointed to a lower opening on Thursday, indicating that major indexes could extend Wednesday’s declines as investors monitored rising Treasury yields, higher oil prices and geopolitical developments.

Treasury yields moved moderately higher after increasing in the previous session. The benchmark 10-year Treasury yield reached its highest level since July 2007, while the 30-year yield climbed to its highest level since 2004.

Oil prices also advanced, with U.S. crude futures rising nearly 2% after gaining 1.8% on Wednesday.

Markets continued to monitor developments involving the United States and Iran after earlier expectations of diplomatic progress contributed to a decline in oil prices at the beginning of the week. Brent crude subsequently returned to above $100 a barrel amid continued uncertainty surrounding the conflict.

U.S.-Iran Developments Remain in Focus

Oil prices rebounded following contrasting remarks by U.S. President Donald Trump and Iranian President Masoud Pezeshkian at the United Nations General Assembly.

Trump warned that the United States could “annihilate” Iran if a peace agreement was not reached, while also indicating that negotiations were continuing and expressing an expectation that a settlement could eventually be achieved.

Pezeshkian criticised what he described as “signs of a bullying mentality” from the United States and said Iran would not surrender.

The statements came as traders continued to assess the prospects for diplomacy and their potential implications for energy markets.

Trump and Xi Set for White House Talks

Investors were also awaiting a meeting between Trump and Chinese President Xi Jinping at the White House on Thursday.

Trade, technology and geopolitical issues are among the subjects expected to feature in the discussions. U.S.-China trade arrangements and critical-mineral supplies have been among the issues receiving particular attention ahead of the summit.

The talks take place against the backdrop of an extension of the existing U.S.-China trade truce, according to U.S. Treasury Secretary Scott Bessent.

Wall Street Closed Lower on Wednesday

U.S. stocks finished lower on Wednesday as Treasury yields and oil prices increased.

The Dow Jones Industrial Average fell 352.10 points, or 0.7%, to 51,511.59. The Nasdaq Composite declined 308.24 points, or 1.1%, to 26,936.04, while the S&P 500 lost 58.61 points, or 0.8%, to close at 7,706.03.

The major indexes ended the session near their daily lows. Higher Treasury yields and oil prices were among the factors being assessed by investors during the session.

Crude oil prices ended a five-session losing streak on Wednesday amid continuing uncertainty surrounding the Middle East.

Gold prices also declined as the U.S. dollar remained firm and markets reassessed expectations for Federal Reserve monetary policy.

U.S. Business Activity Exceeds Expectations

Economic data provided another consideration for interest-rate expectations.

Preliminary September purchasing managers’ indexes from S&P Global covering manufacturing, services and overall business activity all came in above expectations, according to the information supplied.

The stronger activity readings contributed to market discussion about the future path of Federal Reserve policy, although future rate decisions will depend on incoming economic data and decisions by policymakers.

Separately, U.S. Energy Information Administration data showed crude inventories increased by almost 3 million barrels in the latest week, compared with expectations for a substantial decline.

Against this backdrop, U.S. equity futures remained lower ahead of Thursday’s opening, with Treasury yields, oil prices and geopolitical developments among the issues being monitored by investors.

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