U.S. Futures Drop as Bond Yields Surge and Fed Minutes Loom

U.S. futures saw declines on Monday as investors reacted to sustained pressure from the bond market and the upcoming release of the Federal Reserve's latest meeting minutes. Futures for the S&P 500 and Dow Jones Industrial Average each fell 0.2%, while Nasdaq futures dropped 0.3%. Rising yields, driven by factors like stubborn inflation, high oil prices, and strong U.S. economic data, have made borrowing more expensive, weighing on stock prices.

The yield on the 10-year U.S. Treasury hit 5.27%, and the 30-year Treasury yield reached 5.63%, both surging to over 20-year highs. Investors are closely watching the Fed's September meeting minutes, released this week, which will provide insights into the central bank's decision to raise interest rates for the first time in three years.

This week will also bring key U.S. economic indicators, including data on the services sector, unemployment, and consumer sentiment. Meanwhile, RXO Inc. shares surged more than 20% pre-market after C.H. Robinson Worldwide announced a $5.8 billion acquisition deal. In energy trading, U.S. crude oil dipped 0.5% to $90.68 a barrel, while Brent crude rose 0.7% to $102.91 a barrel, reflecting ongoing uncertainty in global oil markets.

European markets showed mixed results, with France’s CAC 40 down 0.8%, Germany’s DAX up 0.1%, and Britain’s FTSE 100 climbing 0.3%. Asian markets were higher, though trading was closed in Shanghai and South Korea for holidays. In currency trading, the U.S. dollar climbed to 157.91 Japanese yen, and the euro dropped to $1.1204.