US equity futures edge lower on Treasury and Iran concerns
US equity futures track lower on Thursday, with S&P 500, Dow and Nasdaq 100 contracts falling up to 0.5% as Treasury yields rise across the curve and fuel costs climb after President Trump said the US entered "economic war" against Iran.
Futures tracking US equities inched down on Thursday, paring the shy increase from last session following the Treasury's move to supress longer-term yields.
Contracts for the S&P 500, Dow, and Nasdaq 100 fell up to 0.5%.
Treasury yields rose across the curve to reflect concerns that the Treasury's efforts to prop up notes and bonds can worsen an already inflationary backdrop with ample dollar liquidity.
Borrowing costs were also lifted by higher fuel and gas prices after President Trump stated the US entered "economic war" against Iran, prolonging blockades of tankers crossing the Persian Gulf.
Banks held their losses as short-term Treasury securities fell further.
On top of that, AI hyperscalers were mostly lower premarket following the tepid financial results from OpenAI, which failed to grow at the same pace of rival Anthropic.
Meanwhile, Walmart sank over 6% after its second-quarter sales fell short of expectations.