US stock futures extended losses for a third straight session on Wednesday, weighed down by surging Treasury yields and rising oil prices that kept investors on edge. The S&P 500 futures declined 0.2% while the tech heavy Nasdaq futures slumped 0.5% as of 8:15am Eastern Time.
What’s driving the selloff? The 10 year Treasury yield climbed to 4.88%, marking a fresh three year peak after former President Trump promised a $5,000 payment if Republicans win the midterm elections. The pledge sparked fresh concerns about fiscal ility and pushed borrowing costs higher across the board.
Not all sectors suffered equally. Meta Platforms gained 1.3% in premarket trading after JPMorgan upgraded the stock to overweight, citing upside potential from its recently launched AI assistant. Apple rose 1.1% while other technology giants posted mixed results. Taiwan Semiconductor Manufacturing Company reported a 53% jump in monthly sales, driven by robust demand for AI infrastructure.
Oil prices added to market jitters, with West Texas Intermediate crude climbing 1.7%. Investors now await August producer price index data and weekly jobless claims, scheduled for release at 8:30am. The Federal Reserve remains in a communications blackout period ahead of its September 15 to 16 policy meeting, leaving markets without guidance during the turbulent session.
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