US stock futures indicated a lower open on Wednesday as Treasury yields and crude oil prices moved higher, following record closing levels for the Nasdaq and S&P 500 in the previous session.
The benchmark ten-year Treasury yield returned to its highest levels since 2002. Crude oil prices also rebounded from a one-month low amid renewed concerns about shipping in the Strait of Hormuz.
UK Maritime Trade Operations said nine attacks had been reported so far this month, compared with 18 across the Strait of Hormuz and Persian Gulf during September.
Separately, Yemen’s Houthi group said on X that it had carried out drone and ballistic missile attacks targeting airports and military installations in Saudi Arabia.
Markets Await Federal Reserve Meeting Minutes
Investors are awaiting minutes from the Federal Reserve’s latest monetary policy meeting, due later on Wednesday, for further information on policymakers’ views ahead of the central bank’s next interest rate decision.
CME Group’s FedWatch Tool indicated a 78.4% probability that the Fed would leave interest rates unchanged and a 21.6% probability of a quarter-point increase.
US equities advanced on Tuesday but finished below their session highs. The S&P 500 gained 44.98 points, or 0.6%, to close at 7,818.93, while the Nasdaq rose 122.48 points, or 0.5%, to 27,599.79. The Dow added 253.38 points, or 0.5%, to 51,521.28.
“The big bond market sell-off appeared to be yesterday’s news on Tuesday as the S&P 500 hit fresh record levels, supported by buoyant AI stocks,” said AJ Bell head of markets Dan Coatsworth.
“Expectation is already building ahead of the U.S. third-quarter earnings season, with numbers starting to filter their way into the market in the coming weeks,” Coatsworth added. “Perceived AI winners are likely to be under the spotlight, particularly given how dominant these companies now are in US indices.”
US Trade Gap Expands More Than Expected
The US trade deficit widened to $105.6 billion in August from a revised $92.8 billion in July, according to the Commerce Department. Economists had forecast a deficit of $99.0 billion.
Among Tuesday’s sector moves, the NYSE Arca Networking Index climbed 3.8% to its highest closing level in almost two months, while the NYSE Arca Airline Index gained 2.7%.
The Dow Jones Utility Average advanced 2.6%, while housing, telecommunications and retail stocks also moved higher. Biotechnology shares declined.
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