US stock futures dropped on Thursday morning as investors balanced strong corporate earnings against persistent inflation concerns. Futures tied to the Dow Jones Industrial Average fell 0.9%, while S&P 500 futures declined 0.5%. Nasdaq-100 futures lost 0.7%, following a retreat from record highs in the prior session.
The market mood remained cautious with bond yields near multi-decade highs. The yield on the 10-year US Treasury stood at 5.28%, and the 30-year yield hit 5.66%, indicating tighter financial conditions and higher borrowing costs.
Attention was also on the Federal Reserve's outlook. Minutes from the September meeting revealed unanimous support among policymakers for a rate hike due to stubbornly high inflation. Investors are now watching for signals from Federal Reserve Governor Chris Waller on future interest rate moves.
PepsiCo reported stronger-than-expected third-quarter results but reduced its full-year profit growth forecast. The company posted revenue of $25.27 billion, up 5.6% year-over-year, but cut its core earnings-per-share growth forecast to 2.5%-3% from the earlier 5%-7% range.
Economic data releases, including the latest US weekly jobless claims, will also be in focus as investors assess the labor market's health.