Wall St futures decline as oil surge, high yields stoke inflation worries
SPY•U.S. stock index futures fell, with Dow futures down 0.9%, S&P 500 futures down 0.5% and Nasdaq 100 futures down 0.73%. Brent crude rose 4.8% to more than $105 a barrel, while the 10-year Treasury yield stood at 5.34%.
1. Futures fall
U.S. stock index futures fell as oil prices surged and Treasury yields hovered near multi-year highs, fueling inflation concerns ahead of earnings season. Brent crude futures jumped 4.8% to more than $105 a barrel, and the 10-year Treasury yield stood at 5.34%, close to its highest level since 2002.
2. Earnings in focus
At 7:24 a.m. ET, Dow E-minis fell 462 points, or 0.9%, S&P 500 E-minis eased 39.5 points, or 0.5%, and Nasdaq 100 E-minis lost 231.75 points, or 0.73%. The earnings season picks up pace next week, with JPMorgan Chase among the big banks set to report.
3. Stocks and Fed outlook
Megacap growth and chip stocks were broadly lower. PepsiCo cut its annual core profit forecast and said it would pursue additional spending cuts; its shares rose 2.4% in volatile trading. Fed Governor Christopher Waller said there was flexibility about the pace of rate increases, while traders widely expected the Fed to hold rates steady at its October meeting.
