US Stock Futures Dipped Amid Rising Oil Prices and Treasury Yields
US stock futures dipped slightly on Wednesday as oil prices and Treasury yields continued to rise. Oil prices are hovering between $90 and $100 per barrel, contributing to stubborn inflation. This has led investors to demand higher returns when buying US debt, pushing down the price of Treasurys and increasing their yields.
The 10-year Treasury yield reached 5.24%, close to levels last seen in 2007 before the financial crisis. The 30-year Treasury yield fell to 5.57% on Wednesday, a level not seen since 2004. Higher yields make borrowing more expensive for everyone and put downward pressure on stock prices.
Wall Street expects the Federal Reserve to raise its benchmark interest rate again in October as US inflation rates remain above 3%. The personal consumption expenditures price index rose 3.7% from a year ago, matching June's figure. Despite the challenges, market analyst Tina Teng at Moomoo said that 'the underlying U.S. economy remains remarkably resilient.'
Boeing shares rose over 2% before the market open after receiving a multi-billion dollar contract from the US Navy for its F/A-XX fighter jets.