Stock futures slip after winning week as Treasury yields hit multiyear highs

  • Stock futures declined Sunday night after major U.S. indexes finished last week higher.
  • Dow futures fell 106 points, or 0.2%, while S&P 500 futures also declined 0.2%.
  • The August personal consumption expenditures price index is due Wednesday, followed by jobs data Friday.

U.S. stock futures edged lower Sunday night after the major indexes posted weekly gains despite a sharp rise in Treasury yields. Dow Jones Industrial Average futures fell 106 points, or 0.2%, while S&P 500 and Nasdaq-100 futures each declined 0.2%. The Dow gained 0.3% last week, ending a three-week losing streak, while the S&P 500 and Nasdaq Composite rose 1.2% and 2.1%, respectively, for their strongest weekly performances since early August. Technology stocks led the advance, with Meta Platforms rising nearly 13% as traders welcomed its Muse artificial intelligence agent, Microsoft gaining more than 4%, and Apple and Nvidia each adding more than 1%. The benchmark 10-year Treasury yield reached its highest level since 2007, the 30-year yield hit a 2004 high, and the two-year yield rose about 17 basis points last week. Ed Yardeni, president of Yardeni Research, said higher-for-longer oil prices linked to the renewed escalation of the Middle East war were increasing inflationary pressure and could require further policy-rate increases by major central banks, while also worsening the outlook for government deficits. Markets will focus on the August personal consumption expenditures price index on Wednesday, new U.S. manufacturing data on Thursday and the September jobs report on Friday.

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