U.S. equity futures rose Wednesday, recovering some ground after a bond-market selloff pressured major indices in the prior session. Investors were preparing for the August Personal Consumption Expenditures price index, a key inflation measure used by the Federal Reserve.
At 4:26 p.m. (Bangkok Time), futures linked to the Dow Jones Industrial Average climbed 130 points, or 0.25%. S&P 500 futures advanced 0.16%, while Nasdaq-100 contracts were up 0.06%.
Treasury yields remained a central focus for markets after another sharp move higher. The 30-year yield moved above 5.6% on Tuesday, its highest level since June 2002. The 10-year yield also pushed toward 5.3%, marking a new high dating back to 2007.
The rise in yields weighed on equities in Tuesday’s regular session. The Dow dropped 131.59 points, while the S&P 500 lost 0.17% and the Nasdaq Composite slipped 0.09%.
Inflation worries have stayed in focus as higher borrowing costs coincide with swings in energy markets. Oil prices moved higher Wednesday, with Brent crude futures gaining 1.04% to $103.66 a barrel, while U.S. West Texas Intermediate jumped 1.12% to $90.38, as the war in Iran continued into its seventh month.
Expectations for Federal Reserve policy also shifted. Traders reduced the implied probability of an October rate increase to about even odds, down from more than 70% a day earlier, according to CME Group data. Market pricing tilted slightly toward no move after New York Fed President John Williams indicated that policymakers did not need to rush into another October increase.
Economists surveyed by Dow Jones expect the August PCE index to rise 0.3% from the previous month. That would put the annual inflation rate at 3.7%.
Investors will also monitor Micron Technology’s earnings after Wednesday’s close for updates on memory-chip demand and the artificial intelligence market.
