.png){kind=logo}
U.S. stock futures fell on Thursday, October 8, as rising oil prices and Treasury yields added to inflation concerns ahead of quarterly earnings reports. Dow futures dropped 462 points in early trading, while technology shares also declined. Brent crude climbed above USD 105 a barrel as attacks on shipping raised concerns about supplies from the Middle East.
At 9:00 a.m. ET, Dow Jones Industrial Average futures fell 462 points, or 0.9%. S&P 500 futures lost 39.5 points, or 0.5%, while Nasdaq-100 futures dropped 231.75 points, or 0.73%. The figures reflected premarket trading rather than changes in the underlying stock indexes.
The declines followed Wednesday’s losses, when the S&P 500 and Nasdaq Composite retreated from record highs. The Dow also ended a four-day winning streak as rising yields and oil prices weighed on trading.
Selling extended beyond U.S. markets. Japan’s Nikkei 225 closed 1.42% lower, while South Korea’s Kospi fell 2.62%. European indexes also declined in morning trading, with the Stoxx 600 down 0.85%.
Brent crude futures rose about 4.8% to more than USD 105 a barrel. U.S. benchmark West Texas Intermediate also advanced nearly 5%, trading around USD 92.60. The gains followed further attacks on shipping in the Gulf and the Strait of Hormuz.
Supply concerns also included production cuts in the Gulf of Mexico ahead of a hurricane. Meanwhile, reports that the U.S. was considering renewed large-scale military operations in Iran added uncertainty over oil shipments.
Higher energy prices have complicated the inflation outlook. Federal Reserve Governor Christopher Waller said hopes for a quick end to the Middle East conflict had faded. He also cited warnings that low inventories and damaged infrastructure could keep oil prices elevated through 2027.
The benchmark 10-year Treasury yield traded around 5.34%, near its highest level since 2002. The 30-year yield also approached a 24-year high, reaching about 5.70% during early trading. Bond prices fall when yields rise.
Speaking in Istanbul, Waller said further rate increases would depend on incoming economic data. “But there is some flexibility about when those hikes will occur,” he said. He added that increases did not need to happen at consecutive meetings.
The Fed raised its policy rate by a quarter of a percentage point in September, bringing the range to 3.75%–4%. Waller said the decision followed months of persistent inflation pressures rather than a response to one economic report.
Technology stocks faced broad premarket losses. Amazon, Tesla and Nvidia each fell around 1%, while Intel, AMD and Marvell declined about 2%. Micron also traded lower as weakness spread across chip shares.
Broadcom fell nearly 2% amid reports that it was arranging more than USD 50 billion in financing linked to custom AI chips for OpenAI. Oracle also traded lower as investors assessed the scale of planned technology financing.
However, Wolfspeed rose about 15% after receiving a conditional USD 1.5 billion loan commitment from the U.S. Department of War. The proposed financing would support domestic production of silicon carbide materials.
Corporate results offered a separate focus for markets. PepsiCo lowered its annual core profit forecast and announced further spending cuts as it worked to stabilize its North American business. Its shares nevertheless rose in volatile premarket trading.
The earnings season gathers pace next week, with JPMorgan Chase among the major banks scheduled to report. LSEG expects S&P 500 quarterly earnings to grow 30.6%, with technology and energy recording the strongest growth.
The Fed’s next policy meeting takes place October 27–28. Traders broadly expect unchanged rates in October, although a December increase remains possible. Upcoming earnings and economic releases will provide further evidence on profits, demand and inflation.
ALSO READ: US Stock Market: S&P 500, Nasdaq Futures Retreat After Record Highs as Oil, Yields Climb
