Pre-Market Update: Stock Futures Fall as Iran War Escalation and Rising Bond Yields Rattle Wall Street
TLDR
- Dow, S&P 500, and Nasdaq futures all fell in premarket trading Wednesday
- Brent crude jumped above $95 per barrel after Trump threatened Iran with harder strikes
- The 10-year Treasury yield hit 4.79%, the 30-year climbed to 5.27%
- US-Canada trade tensions continued with no clear path to talks
- Earnings from Broadcom and Snowflake are due Wednesday
US stock futures dropped Wednesday morning as rising oil prices and bond yields put pressure on markets heading into September.
Dow Jones futures fell around 0.2%, S&P 500 futures slipped 0.3%, and Nasdaq-100 futures led losses, dropping 0.6%. It extended a rough Tuesday session where the Nasdaq fell 1%.
Iran War Escalation Pushes Oil and Yields Higher
Brent crude climbed above $95 per barrel after President Trump threatened to hit Iran “much harder” following a wave of US airstrikes on Tuesday. That threat pushed energy prices up and added to inflation worries already weighing on investors.
Higher oil prices feed into inflation expectations, which in turn push bond yields up. The 10-year Treasury yield rose to 4.79% on Tuesday. The 30-year hit 5.27%.
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