Treasury yields rose alongside oil prices as the dollar strengthened in early European trade. Nasdaq and S&P 500 futures moved modestly after indexes hit records in the prior session. The "Magnificent Seven" mega-cap companies, including Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta and Tesla, continued to strengthen in premarket trade.
Dow Jones Industrial Average futures dropped 0.2%, while S&P 500 futures were flat and Nasdaq futures edged lower amid chip maker weakness. Mark Haefele of UBS Wealth Management noted the breadth of the rally had narrowed, reinforcing the importance of managing risk. Brent crude oil prices rose 0.6% to $101.20 a barrel after Houthi militants attacked Saudi airports.
Conflict in the Arabian peninsula escalated as Saudi-backed forces launched a counteroffensive. Ten-year Treasury yields added 3.6 basis points to 5.307%, while 30-year yields jumped 4.3 basis points to 5.683%. Higher yields and oil prices dragged market sentiment in Asia and Europe.
The Korean Kospi slipped 2%, Hong Kong's Hang Seng Index fell 0.6%, and Japan's Nikkei 225 fell 0.9%. In Europe, AI-linked stocks slid as the Stoxx 600 fell 0.55%. French government bonds came under pressure as budget talks remained in focus.
The dollar strengthened, prompting a fall in bitcoin and gold prices. Bitcoin fell close to $84,100, while New York gold contracts fell 0.7% to $4,159 a troy ounce. For the day ahead, the Federal Reserve will publish minutes from its September policy meeting.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing