US equity futures showed minimal change on Thursday evening, with Dow Jones Industrial Average futures down 0.06%, S&P 500 futures down 0.05%, and Nasdaq-100 futures also down 0.05%. This follows a regular trading day where the Dow slipped about 0.3%, while the S&P 500 and Nasdaq Composite finished flat. The market's movement was influenced by rising Treasury yields, with the 10-year Treasury yield climbing to 5.225% and the 30-year yield reaching 5.502%, marking the highest levels since 2007.
The increase in bond yields was attributed to hawkish remarks from Federal Reserve Governor Michael Barr, persistent high energy prices, possibly linked to the Iran war, and a robust purchasing managers' report. This surge in yields also pushed the 30-year fixed rate mortgage to 7.45%, its highest since 2024, indicating higher borrowing costs for consumers. Economists like Heather Berger from Morgan Stanley anticipate these pressures will weigh on consumer spending, especially for goods, leading to an expected 40 basis point deceleration in real consumption growth next year.
Despite the daily fluctuations, the Dow is set for its fourth consecutive losing week, down 0.6% in the period. Conversely, the S&P 500 is on track for a 0.7% advance, and the Nasdaq is up 1.6% week-to-date. Traders are now looking ahead to Friday's University of Michigan consumer sentiment report and durable goods data for further market direction. In corporate news, Akamai Technologies surged almost 20% after an $11.6 billion agreement with Anthropic, and Costco Wholesale's fourth-quarter results surpassed estimates, while Scholastic Corp. saw a nearly 13% decline after reporting a fiscal first-quarter loss of $3.63 per share.
