U.S. equity futures moved lower early Thursday as elevated Treasury yields continued to weigh on risk appetite. Investors remained focused on the prospect of further Federal Reserve rate increases after strong economic signals reinforced inflation concerns.
At 4:12 p.m. (Bangkok Time), futures tied to the S&P 500 were off 0.59%, while Nasdaq-100 contracts dropped 1.03%. Dow Jones Industrial Average futures declined 0.39%.
The pullback followed renewed pressure in the bond market. On Wednesday, the 10-year Treasury yield climbed to its highest level since 2007 after S&P Global’s manufacturing and services purchasing managers’ indexes (PMIs) pointed to solid growth, a reading that added to worries that inflation could remain persistent.
Energy markets also drew attention after crude prices rebounded Thursday. Brent futures advanced 2.57% to $105.73 a barrel, while U.S. West Texas Intermediate rose 1.8% to $94.14.
Trade and geopolitical issues were also in focus. President Donald Trump’s meeting with Chinese leader Xi Jinping was expected to be a major market event Thursday.
Treasury Secretary Scott Bessent said Washington and Beijing had agreed to keep their trade truce in place for another two months, through Jan. 10. This leaves artificial intelligence competition, Iran war, and critical minerals as the key topic dominating the discussions. Several senior U.S. technology executives were also due to attend a dinner with the two leaders.
Investors were awaiting weekly jobless claims for additional signals on economic conditions. Corporate updates were also on the calendar, with Darden Restaurants scheduled to report in the morning and Costco Wholesale due after the market closed.
