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LivestreamMenuTraders work on the floor of the New York Stock Exchange in New York on Sept. 16, 2026.Timothy A. Clary | AFP | Getty Images
Stock futures hovered near the flatline Wednesday night after surging yields in Treasurys sparked a sell-off in the market and traders anticipated rate hikes from the Federal Reserve.
S&P 500 futures were up 0.05%, while futures tied to the Dow Jones Industrial Average advanced 15 points, or 0.03%. Nasdaq-100 futures gained 0.1%.
During the regular trading day, the Dow Industrials fell more than 350 points, or 0.7%, while the S&P 500 slid 0.8%. The Nasdaq Composite lost 1.1% and broke a four-day win streak.
The benchmark 10-year Treasury note yield, which is tied to rates on mortgages, surged to 5.135% for its highest level since July 2007. The yield on the 2-year note climbed to 4.947% for its highest since May 2024.
As yields surged, so did the market’s anticipation of further rate hikes from central bank policymakers. Fed funds futures trading suggests a greater than 68% likelihood that the policy-setting Federal Open Market Committee lifts its key rate once more in October, according to the CME FedWatch tool. That compares to a roughly 49% probability just a week ago.
Higher yields tend to squeeze consumers’ finances as they face higher borrowing costs at a time when they’re already paying more in fuel costs.
Oil prices bounced Wednesday. International Brent crude futures rose about 3.9% to settle at $103.08 a barrel, while West Texas Intermediate crude gained 1.8% to $92.16.
Readings from S&P Global’s manufacturing and services purchasing managers indexes suggested that U.S. businesses are continuing to boom. BMO Capital Markets said in a Wednesday note that even as the results were strong, “severe supply chain bottlenecks,” as well as higher fuel and transport prices, can drive inflation.
“Overall, it was a much stronger-than-expected read on US business activity that implies ample latitude for both policy rates and Treasury yields to push higher in the near-term,” said Vail Hartman, a U.S. rates strategist at BMO. “If anything, the data reinforces the risk of a renewed acceleration in demand-driven inflation even if supply-side inflation subsides.”
Going into Thursday, traders will be watching weekly jobless claims for further details on the state of the economy. On the earnings front, they’ll also look for quarterly results from Olive Garden parent Darden Restaurants in the morning and big-box retailer Costco Wholesale in the afternoon.
30 Min Ago
Costco and BlackBerry set to report earnings
Branded Costco Wholesale refrigerated logistics trailers sit parked behind a concrete retaining wall at a Costco warehouse facility in Saratoga Springs, Utah, United States, on September 8, 2026. Charles-McClintock Wilson | Nurphoto | Getty Images
Costco and BlackBerry, are set to report earnings on Thursday.
Analysts polled by FactSet expect Costco will report $94.86 billion in revenue and $6.53 in earnings per share for the fourth quarter. The big-box retailer is expected to report after the bell. For the third-quarter, Costco beat Wall Street consensus on revenue, noting “record-breaking volumes” for gas.
BlackBerry, slated to report on Thursday morning, is expected to post $142.5 million in revenue. That’s in line with the software provider’s guidance, which is between $137 million and $148 million. The company is expected to earn 4 cents per share.
— Ananya Chetia
1 Hour Ago
Stock futures open flat on Wednesday evening
U.S. equity futures opened little changed on Wednesday at 6 p.m. in New York.
Futures tied to the S&P 500 advanced 0.06%, while the Nasdaq-100 futures climbed 0.1%. Dow futures inched up 21 points, or 0.04%.
—Darla Mercado
