U.S. stock futures edged higher in Asian trading Friday after Wall Street posted its steepest decline in three weeks. Rising Treasury yields and higher oil prices kept investors wary over inflation and borrowing costs, while Walmart's weak results dragged consumer stocks lower.
U.S. stock futures ticked up in Asian trading Friday, a day after Wall Street suffered its steepest decline in three weeks. S&P 500 futures inched 0.2% higher. Nasdaq 100 futures rose 0.3% to 29,389.50 points. Dow Jones futures traded 0.1% higher at 52,907.0 points.
Wall Street's sharpest drop in three weeks
The gains follow a rough Thursday session. The Dow Jones Industrial Average dropped 1.3%. The S&P 500 lost 0.9%, and the Nasdaq Composite declined 1%.
The selloff came as Treasury yields resumed their climb, reversing much of Wednesday's relief even though the U.S. Treasury said it would increase purchases of longer-dated debt. The 10-year Treasury yield rose to about 4.70%. The 30-year yield reached 5.25%, underscoring investor concern over inflation, government borrowing and the supply of U.S. debt.
Higher yields can weigh particularly heavily on technology and growth stocks by raising the discount rate applied to future earnings. Big technology shares fell broadly on Thursday, adding to pressure on the Nasdaq.
Oil adds to inflation worries
Brent crude remained elevated above $93 a barrel as tensions between the United States and Iran stayed unresolved. Rising energy costs have revived concerns that inflation could prove more persistent, complicating expectations for monetary policy.
Walmart drags consumer stocks lower
Retailer Walmart added to the risk-off mood after its shares plunged 9.2% on Thursday following weaker-than-expected quarterly sales growth and a warning of a softer consumer environment as higher fuel costs weigh on households. The decline spread across consumer-related stocks, with Amazon, Home Depot and American Express among the major decliners.
Deere & Company bucked the broader decline, rising 7% after raising the lower end of its full-year profit forecast.
Investor attention is increasingly shifting toward the Federal Reserve's policy outlook ahead of the Jackson Hole Economic Policy Symposium on Aug. 27-29.
Source: Investing.com
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