US equity futures remained mostly stable on Thursday following President Donald Trump’s announcement of expanded economic measures targeting Iran and an unexpected decision by the Treasury Department to intervene in the bond market. These developments pressured Treasury yields lower, drawing investor attention as trading resumed.
At 4:22 p.m. (Bangkok Time), S&P 500 futures dipped by 0.05%, Dow Jones Industrial Average futures dropped 0.15%, and Nasdaq-100 futures recorded a modest gain of 0.03%.
Activity in the bond market intensified after Treasury Secretary Scott Bessent moved to pull down yields on long-term government debt. This intervention could challenge Federal Reserve Chair Kevin Warsh’s approach of letting market forces contribute to monetary tightening.
The Treasury’s plan involves significantly increasing buybacks of 10-, 20-, and 30-year government bonds over the coming months. The announcement followed a surge in the 30-year bond yield, which recently approached levels last seen two decades ago.
The nation’s fiscal position also drew renewed scrutiny as the U.S. national debt exceeded $40 trillion, having more than doubled in under ten years.
On the geopolitical front, Trump’s frustration grew over the absence of progress in reopening the Strait of Hormuz or ending ongoing conflict with Iran. In a recent post on Truth Social, he outlined intentions for a major escalation in economic pressure, characterizing the upcoming action as an economic warfare designed to impose isolation on Iran.
Looking ahead, market participants are focused on Thursday’s U.S. jobless claims report, with economists anticipating 210,000 first-time filings for the week ending August 15. Additionally, Walmart is due to report fiscal second-quarter earnings before the market opens.
