Dow, S&P, Nasdaq Futures Mixed as Yields Pull Back

U.S. stock futures posted mixed results in the overnight session late Wednesday, following a retreat in long-dated U.S. Treasury yields from multi-decade highs. At 10:22 p.m. EDT, Dow futures declined 0.11%, S&P 500 futures dropped 0.02%, and Nasdaq-100 futures advanced 0.05%.

The overnight trading follows a Wednesday session in which all three major benchmarks finished in negative territory due to elevated bond yields. The Dow Jones Industrial Average saw the steepest drop, closing 0.66% lower after losing approximately 341 points. The S&P 500 and the Nasdaq Composite both ended the day down 0.22%.

Bond yields had climbed to levels not seen in decades earlier in the week, creating headwinds for equities. The U.S. 10-year Treasury yield reached a 24-year peak of 5.364%, its highest point since early 2002, while the U.S. 30-year Treasury bond yield hit a 24-year high of 5.7041%. Jim Bianco, president and macro strategist at Bianco Research, argued that bonds now provide fundamentally appropriate interest-rate levels, rendering them attractive after years of high costs.

Minutes from the Sept. 15-16 Federal Open Market Committee meeting suggest another rate hike could occur before the year ends. The central bank increased rates by 25 basis points in September, and the minutes indicated that most participants viewed a further increase as likely appropriate by year-end. The Kobeissi Letter noted on X that all 19 Fed officials supported the September hike, with nearly all viewing inflation risks as skewed upward; some warned that AI might push demand beyond supply, adding to inflationary pressures.

According to the CME FedWatch tool, the probability of a 25 basis point hike in December stands at 66%, while the chance of a 50 basis point hike is 13.7%. Courtney Garcia, senior wealth advisor at Payne Capital Management, told CNBC that robust earnings could maintain the market rally despite higher rates. FactSet data shows the S&P 500 is projected to have a blended earnings growth rate of about 30% for the third quarter.

Several stocks moved significantly during the overnight session. Applied Digital Corp. shares rose nearly 6% after announcing an agreement for access to up to 1 gigawatt of potential power capacity in Finland. Wolfspeed Inc. shares jumped more than 18% following a conditional $1.5 billion loan commitment announcement by the U.S. Department of War’s Office of Strategic Capital. Netlist Inc. shares continued their climb for a second day after Micron Technologies agreed to pay $600 million to license its patents and settle their legal dispute.

Webull Corp. drew retail attention after its stock fell to its lowest level since April 2025, reportedly fueling concerns about its ties to China amid a bipartisan House committee investigation.

In other markets, oil prices edged up, with Brent crude futures for December expiring at $102.38 per barrel and WTI crude futures for November at $89.88 per barrel. Asian markets opened lower on Thursday, with South Korea's KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks all trading in negative territory.