U.S. stock futures steady after Wall St hit by higher yields, oil

U.S. stock futures were little changed on Tuesday evening after Wall Street closed lower for a third straight session, as a global bond selloff and higher oil prices kept investors cautious and pressured rate-sensitive technology shares.

As of 20:53 ET (00:53 GMT), S&P 500 Futures traded flat at 7,714.50 points, while Nasdaq 100 Futures fell 0.1% to 29,569.75 points. Dow Jones Futures were mued at 53,393.0 points.

In the regular session, the S&P 500 fell 0.7%, the Dow Jones Industrial Average lost 0.2%, and the NASDAQ Composite dropped 1.3%, its steepest decline since July 29.

Technology and semiconductor stocks bore the brunt of the selling. The Philadelphia Semiconductor Index fell 5%, while Nvidia (NASDAQ:NVDA) dropped 2.3% and Micron Technology (NASDAQ:MU) slid 7%.

Rising Treasury yields have increased the discount rate applied to future earnings, weighing particularly heavily on high-growth technology stocks.

The bond market remained a key focus. The 30-year U.S. Treasury yield climbed to 5.335% during Tuesday’s session, its highest level since June 2007, before easing to around 5.29%. The 10-year yield ended at about 4.71%.

Global government bond yields also rose to multi-year highs as investors fretted over inflation, fiscal deficits and heavy government borrowing.

Higher oil prices added to inflation concerns. Brent crude extended gains above $91 per barrel in Asian trading Wednesday as uncertainty surrounding the U.S.-Iran conflict and the Strait of Hormuz persisted.
President Donald Trump said on Tuesday that no talks with Iran were scheduled and that a U.S. naval blockade remained in force, while Iran denied negotiations.

Investors were also looking ahead to the Federal Reserve’s minutes from its July meeting, due on Wednesday. Markets will scrutinize the minutes for clues on the policy outlook after three regional Fed presidents dissented from the decision to keep interest rates unchanged.

On the earnings front, Home Depot Inc (NYSE:HD) beat quarterly profit and revenue estimates and reported its strongest comparable-sales growth since the third quarter of 2022.

Walmart Inc (NASDAQ:WMT) and Target Corporation (NYSE:TGT) are among the major retailers reporting later this week.

Despite the recent pullback, the S&P 500 remained only about 1.3% below its record closing high reached last Thursday, underscoring the market’s resilience.