US Stock Futures Rise as Treasury Yields Remain Elevated; Costco Reports Higher Quarterly Sales: Dow Jones, S&P, Nasdaq, Wall Street
US stock futures moved higher on Friday as investors assessed elevated Treasury yields, developments in oil markets and quarterly results from Costco (NASDAQ:COST).
At 03:12 ET, Dow futures were up 63 points, or 0.1%, while S&P 500 futures gained 11 points, or 0.1%. Nasdaq 100 futures rose 126 points, or 0.4%.
The moves followed a mixed session on Wall Street on Thursday. The Dow Jones Industrial Average and S&P 500 closed lower, while the Nasdaq Composite gained 0.01%.
Treasury yields have risen during the week alongside elevated oil prices and expectations surrounding the Federal Reserve’s interest-rate path.
“One important theme at the moment is that Treasuries continue to sell-off with oil but that breakevens aren’t moving, with pretty much all the move being driven by real yields,” Deutsche Bank analysts said in a note.
US 10-Year Treasury Yield Reaches 5.2%
The benchmark US 10-year Treasury yield reached 5.2% by Thursday’s close, its highest level since 2007, while the 30-year yield climbed to its highest level since 2004.
The 10-year yield also recorded its largest two-day increase since US President Donald Trump announced his “Liberation Day” tariffs the previous year.
The moves came as markets assessed higher oil prices, US economic data and expectations for Federal Reserve monetary policy.
The Federal Reserve increased interest rates by 25 basis points the previous week, with inflation pressures linked to energy prices among the factors cited in the supplied material.
Recent sessions have also seen periods in which rising oil prices have coincided with higher bond yields and lower equity prices. The relationship between oil prices and longer-term interest rates, however, depends on a broader range of economic and inflation expectations.
Oil Prices Fall as Markets Assess US-Iran Reports
Oil prices declined on Friday following reports that the United States and Iran were exploring a phased arrangement that could include reopening the Strait of Hormuz.
Both major crude benchmarks had risen by as much as 5% during Thursday’s session before reducing their gains following reports of talks between the two countries.
Earlier gains followed Saudi Arabia’s statement that it had intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthis towards locations including Taif and the Yanbu region on the Red Sea.
The developments drew attention to Saudi energy infrastructure and export routes after earlier damage to the East-West pipeline affected crude shipments to Yanbu.
Yanbu is a Red Sea oil export hub connected to Saudi Arabia’s eastern oil-producing regions. Saudi Arabia had been increasing crude flows towards the port, although tanker loadings had not yet fully resumed, according to the supplied information.
Reports subsequently indicated that US and Iranian negotiators in New York were discussing a phased framework under which Iran would reopen the Strait of Hormuz in exchange for the United States lifting its economic blockade.
No agreement was reported as having been finalised.
Musk Outlines Plans to Add Nvidia Chips to Colossus 2
Elon Musk said he plans to substantially increase the number of advanced Nvidia (NASDAQ:NVDA) chips used at the Colossus 2 data centre in Tennessee by the end of 2026.
In a post on X, Musk said the facility has used 110,000 Nvidia GB200 chips and 440,000 GB300 chips.
He said an additional 220,000 GB300 chips are expected to come online by the following week, with another 220,000 planned for November.
“If we get lucky, yet another 220k GB300 by late December,” Musk said in response to a post concerning xAI’s computing capacity.
Musk has described Colossus as the “world’s largest AI supercomputer.” Colossus 1 was initially built in 2024 to train xAI’s Grok artificial intelligence model.
Costco Fourth-Quarter Revenue Reaches $95.7 Billion
Costco reported fiscal fourth-quarter earnings and revenue above analyst estimates, although its shares were slightly lower in extended trading following the results.
Earnings per share were $6.75, compared with the consensus estimate of $6.55.
Revenue reached $95.7 billion, above the analyst estimate of $94.85 billion.
Net sales for the 16-week fourth quarter increased 11.2% to $93.9 billion from $84.4 billion in the corresponding period a year earlier.
Adjusted earnings per share of $6.75 included a non-recurring benefit of $0.15 per share related to tariff refunds received during the quarter, partly offset by reinvestment intended to increase value for members.
Comparable sales increased 9.4% on a reported basis and 6.7% excluding changes in gasoline prices and foreign exchange movements. The adjusted figure compared with an analyst estimate of 6.44%.
US comparable sales increased 10.7% on a reported basis and 7.2% on an adjusted basis. Comparable sales in Canada rose 5.0%, or 4.6% on an adjusted basis, while other international markets recorded growth of 7.0%, or 6.2% after adjustments.
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