"These moves combine several factors that have historically challenged risk assets: higher bond yields, higher oil prices, and weakness in the technology and AI-linked shares," said analysts at UBS Global Wealth Management.
"While they deserve attention, we do not believe recent market moves undermine the core case for equities."
At 07:16 a.m. ET, Dow E-minis YMcv1 fell 103 points, or 0.19%, S&P 500 E-minis EScv1 were down 3 points, or 0.04%, and Nasdaq 100 E-minis NQcv1 lost 15.25 points, or 0.05%.
Megacap and growth stocks were mixed on Thursday, with Apple AAPL.O and Alphabet GOOGL.O inching 0.1% lower, while Nvidia NVDA.O and Meta META.O ticked up slightly.
Oil prices LCOc1 rose 2.7%, extending gains for the fifth consecutive session on stalled U.S.-Iran peace talks and Middle East supply disruptions.
The recent macro developments have knocked the S&P 500 .SPX and the Dow .DJI off record highs clocked earlier this month, on the back of a strong earnings season, as numbers from companies in several sectors including some AI hyperscalers paint a strong picture of corporate America.
Investors will look for a report on weekly jobless claims data later in the day, along with comments from St. Louis Fed President Alberto Musalem.
Minutes from the U.S. Federal Reserve's July meeting, released on Wednesday, had shown concern about inflation deepening at the central bank, with "several" policymakers ready to raise interest rates and "many" saying a hike in borrowing costs will be needed if inflation does not decline to the central bank's 2% target.
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