US stock futures were largely unchanged, with the S&P 500 futures showing little movement. This came as a rebound in long-dated Treasuries lost momentum, and the 30-year yield increased by three basis points to 5.22%. Brent crude oil prices approached $94 a barrel, signaling renewed inflation risks. Meanwhile, the dollar weakened, gold slipped, and Bitcoin surged above $70,000 for the first time since June, reaching $71,910.9.
The market dynamics followed a surprise announcement from Treasury Secretary Scott Bessent, who increased long-term bond buybacks to counteract rising yields. Despite this intervention, which had initially caused bond yields to fall, the effect proved temporary. Graham Secker, head of equity strategy at Pictet Wealth Management, commented that if higher bond yields are a structural issue, short-term intervention only offers a temporary reprieve without altering the long-term trajectory. The S&P 500 remained down since Monday, despite hitting a record high last week.
In Europe, the Stoxx 600 slightly decreased, extending its longest losing streak of 2026, though government bonds were mixed. The euro, pound, and Swiss franc strengthened against the dollar. The Bloomberg Dollar Spot Index fell 0.1%. Traders are anticipating Nvidia Corp.'s earnings next week for insights into the artificial intelligence sector, as chipmakers have faced recent pressure. The 10-year Treasury yield rose two basis points to 4.67%, and Brent crude increased 2.5% to $93.87 a barrel.
