S&P 500 futures edged lower in Asian trading Wednesday after Wall Street closed down for a third straight session. A global bond selloff and rising oil prices weighed on rate-sensitive technology shares, even as the index stayed within striking distance of its record high.
S&P 500 futures ticked down 0.1% to 7,707.50 points as of 02:33 ET, while Nasdaq 100 futures fell 0.3% to 29,493.0 points. Dow Jones futures were muted at 53,394.0 points. In the regular session, the S&P 500 fell 0.7%, the Dow lost 0.2%, and the Nasdaq Composite dropped 1.3%, its steepest decline since July 29.
Tech and chip stocks bear the brunt
Technology and semiconductor stocks led the selling. The Philadelphia Semiconductor Index fell 5%, while Nvidia dropped 2.3% and Micron Technology slid 7%.
Rising Treasury yields have increased the discount rate applied to future earnings, weighing particularly heavily on high-growth technology stocks. The 30-year Treasury yield eased slightly Wednesday after climbing to 5.335% during Tuesday's session, its highest level since June 2007.
The 10-year yield ended at about 4.71%. Global government bond yields also rose to multi-year highs as investors fretted over inflation, fiscal deficits and heavy government borrowing.
Oil prices add to the pressure
Higher oil prices compounded inflation concerns. Brent crude extended gains above $91 per barrel in Asian trading Wednesday as uncertainty over the U.S.-Iran conflict and the Strait of Hormuz persisted.
President Donald Trump said Tuesday that no talks with Iran were scheduled and that a U.S. naval blockade remained in force, while Iran denied negotiations were taking place.
Fed minutes and retailer earnings loom
Investors are also looking ahead to the Federal Reserve's minutes from its July meeting, due Wednesday. Markets will scrutinize the minutes for clues on the interest rate outlook after three regional Fed presidents dissented from the decision to keep rates unchanged.
On the earnings front, Home Depot beat quarterly profit and revenue estimates and reported its strongest comparable-sales growth since the third quarter of 2022. Walmart and Target are among the major retailers reporting later this week.
Despite the pullback, the S&P 500 remained only about 1.3% below its record closing high reached last Thursday, underscoring the market's resilience.
Source: Investing.com
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