US stock futures extended losses for a third consecutive session on Thursday, weighed down by climbing Treasury yields and surging oil prices that kept investors cautious ahead of critical inflation data. The S&P 500 futures fell 0.2% while tech-heavy Nasdaq futures dropped 0.5% as of 8:15am Eastern Time.
The 10-year Treasury yield pushed past 4.88%, reaching its highest level in three years. What’s driving this sudden spike in borrowing costs? Fresh concerns about fiscal ility emerged after President Trump promised $5,000 payments if Republicans win the midterm elections, fueling worries about government spending.
Oil markets added to inflationary pressures. West Texas Intermediate crude climbed 1.7% as tensions escalated in the Middle East, with Iran signaling readiness for intensified conflict. Brent crude traded above $103 per barrel, while Shai prices hit $115.
Among individual stocks, Cooper Companies plunged 16% after slashing its full-year earnings guidance, citing weakness in its CooperVision unit. American Eagle Outfitters dropped 14% following disappointing second-quarter comparable sales. Meanwhile, Meta Platforms gained 1.3% after JPMorgan upgraded the stock to overweight, praising the company’s new AI assistant launch.
Investors now await the August Producer Price Index report and weekly jobless claims data, both scheduled for release at 8:30am, looking for fresh clues on inflation’s trajectory before the Federal Reserve’s September meeting.
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