Stock Futures Flat After Treasury Yields Surge Trigger Market Sell-Off
U.S. stock futures remained near flat on Wednesday night after a sell-off triggered by rising Treasury yields and expectations of further Federal Reserve rate hikes. During regular trading, major indices like the Dow Jones Industrial Average fell over 350 points while the S&P 500 and Nasdaq Composite also declined significantly. The benchmark 10-year Treasury yield reached its highest level since July 2007 at 5.135%, with the 2-year note hitting a high of 4.947%. Market participants are now pricing in over a 68% chance that the Fed will raise rates again in October, up from around 49% just one week ago. Strong readings from S&P Global's manufacturing and services PMIs indicate continued U.S. economic growth but also highlight risks of inflation due to supply chain bottlenecks and higher fuel costs.
Topics: federal reserve rate expectations oil prices stock market movement treasury yields