Middle East Tensions Send Nasdaq Futures Sliding Amid Rising Oil Prices

Nasdaq futures slipped on Wednesday due to escalating tensions in the Middle East and rising oil prices. The 10-year Treasury yield climbed to its highest level since November 2023, reaching 4.8%. This increase is causing concern about inflation and potential rate hikes.

Economist Mohamed El-Erian warned that if yields persist, markets may begin worrying about interest-rate risk morphing into credit risk. Peter Schiff also stated that the combination of higher oil prices, rising Treasury yields, and a weakening labor market leaves the Federal Reserve in a difficult position.

Tech stocks were under pressure, with memory stocks Micron Technology (MU), SanDisk (SNDK), and SK Hynix (SKHY) declining. However, Dell Technologies (DELL) rose 10% after raising its annual revenue and profit forecasts.