U.S. Futures Dip as Bond Market Pressures Mount and Fed Minutes Awaited

U.S. stock futures opened lower on Monday as ongoing pressure from the bond market weighed on investor sentiment. Futures for the S&P 500 and Dow Jones Industrial Average each fell 0.2%, while Nasdaq futures dropped 0.3%. Rising bond yields, which make borrowing more expensive, have contributed to the decline in stock prices. The yield on the 10-year U.S. Treasury hit 5.27%, and the 30-year Treasury yield reached 5.63%, both marking more than 20-year highs.

The focus this week is on the Federal Reserve’s minutes from its September meeting, set to be released on Wednesday. The Fed raised benchmark interest rates for the first time in three years at that meeting, and investors are closely watching for clues about future monetary policy. Key economic indicators, including data on the U.S. services sector, unemployment, and consumer sentiment, are also due this week.

In corporate news, shares of RXO Inc. surged over 20% after C.H. Robinson Worldwide announced a $5.8 billion cash-and-stock deal to acquire the company. The merger between Skydance-owned Paramount and Warner Bros. Discovery, valued at $81 billion, is expected to close on Tuesday, with the combined entity rebranding as Skydance Corporation and adopting the ticker “SKYD.”

Energy markets saw mixed movements, with U.S. crude oil dipping 0.5% to $90.68 per barrel, while Brent crude rose 0.7% to $102.91. Oil prices have been volatile due to uncertainties surrounding the war with Iran. In Europe, the France’s CAC 40 fell 0.8%, Germany’s DAX rose 0.1%, and Britain’s FTSE 100 climbed 0.3%. Asian markets were higher, though trading was closed in Shanghai and South Korea for holidays.