U.S. equity futures moved higher Friday as markets tracked elevated Treasury yields, volatile energy prices and geopolitical developments. The moves kept investors focused on inflation risks, interest rate expectations and consumer pressure.
At 4:23 p.m. (Bangkok Time), contracts tied to the Dow Jones Industrial Average and S&P 500 each gained 0.31%. Nasdaq-100 futures were up 0.61%, signaling a firmer open after a muted session Thursday, when the S&P 500 and Nasdaq Composite ended little changed and the Dow slipped 0.31%.
Treasury markets remained a central concern for investors. The 10-year yield rose as high as 5.225% late Thursday—its strongest level since 2007—before cooling down to 5.167% on Friday, while the 30-year yield jumped to 5.463%.
The rise in yields followed a combination of factors, including tougher policy remarks from Federal Reserve Governor Michael Barr, continued strength in energy prices linked to the Iran war, and a stronger-than-expected purchasing managers’ report. CME FedWatch data showed fed funds futures pricing in about a 68% probability of an October rate increase.
Crude prices eased slightly Friday. West Texas Intermediate futures declined 2.21% to $92 a barrel, while Brent contract slipped 1.61% to $104.88. Average U.S. gasoline prices moved close to $4.50, adding to the financial strain on households.
In Washington, Chinese President Xi Jinping was set to conclude his White House visit after Thursday’s formal dinner, which featured a red-carpet reception and senior U.S. corporate leaders. The meeting produced limited policy movement, with both sides appearing to leave trade arrangements broadly unchanged for the next several months.
Investors will next watch the University of Michigan’s consumer sentiment release for signs of any shift in U.S. inflation expectations.
