Tech Stocks Stabilize as Fed Minutes Loom
US stock futures were largely unchanged on Wednesday as investors attempted to stabilize after a sharp decline in technology stocks. The Philadelphia Semiconductor Index fell around 5% on Tuesday, leading a broader retreat in growth shares, with Nasdaq 100 futures modestly lower and S&P 500 and Dow futures hovering around flat.
The bond market offered some relief, with the 10-year Treasury yield slipping towards 4.69% and the 30-year easing to about 5.27%. Despite this, the long bond remains close to its highest level since 2007, with higher borrowing costs posing a challenge for expensive technology stocks.
The Federal Reserve minutes, due at 2 pm ET, could reset rate expectations, with policymakers having held the federal funds target at 3.5%-3.75% last month but three officials dissenting in favor of a quarter-point increase.
Oil prices pushed higher as uncertainty over the Strait of Hormuz kept a geopolitical premium in prices, with Brent crude climbing towards $92 a barrel and WTI approaching $86. A prolonged disruption could reignite inflation concerns and keep upward pressure on bond yields.