US Equity Futures Drop as Treasury Yields Increase

US Equity Futures Drop

US equity futures are weaker as yields resume their rise and the USD strengthens after the BOE signaled it was ready to cut rates. As of 7:45am, S&P futures were down 0.2% and Nasdaq futures dipped 0.3% as all Mag7 names and most semis were red in the premarket.

European Markets Lower

Most European markets are lower, tracking US futures and Asian stocks in what appears to be de-risking in a catalyst-light week. 10Y treasuries ticked lower for a second day, pushing the yield about 2bps higher to 4.51% after a $42 billion sale of 10-year notes received tepid demand.

Commodities Stronger

Commodities are stronger with Ags/Energy outperforming Metals. Jobless data is not expected to be market moving but keep an eye on the 30Y bond auction.

Premarket Trading

In premarket trading, US-listed shares of Arm Holdings plunged 8.5% after the chip-design company gave a full-year forecast that is seen as mixed relative to consensus, especially given the market’s high expectations.

Stock Bounce Fading

The recent stock bounce is fading as the earnings season winds down, leaving investors to wait for new data - especially next week's CPI report - for clues to gauge how fast policymakers will be able to begin cutting rates.

Rate Cuts Expected

“We still see potential rate cuts to be some months out and with no probable actions occurring prior to September ,” Louise Dudley, portfolio manager for global equities at Federated Hermes, said in a note to clients. “US economy figures have generally been hot.”

European Stocks Fall

European stocks fell 0.2%, hovering near record highs after rising in the prior four sessions. The  energy sector outperformed, while autos were the worst laggards.

Asian Stocks Resume Gains

Asian stocks resumed gains on Thursday, lifted by optimism around key offshore Chinese tech companies as they report earnings next week.

Bitcoin Soft

Bitcoin softer on the session and holds just shy of USD 61k, whilst Ethereum unable to climb back above USD 3k.

Closing Thoughts

As we see the global markets fluctuating and central banks signaling potential rate cuts, it's clear that the financial landscape is in a state of flux. What do you