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Bond Yields, Persian Gulf Outlooks Cap Wall Street Pre-Bell; Asia, Europe Off

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Wall Street futures pointed largely sideways pre-bell Wednesday, as a global bond sell-off eased, and as traders awaited fresh reports from the Persian Gulf.

In the futures, the S&P 500 was steady, the Nasdaq declined 0.1%, and the Dow Jones traded down 0.2%.

West Texas Intermediate crude oil futures traded higher at $84.87, up 1%, in morning action.

The VanEck Semiconductor fund (SMH) traded down 0.1% pre-bell, after losing 4.1% on Tuesday.

Investors also await the 2 pm ET release of minutes of the Federal Reserve policy-setting session held July 28-29, which are sure to be parsed for clues to central banker thinking.

Asian exchanges traded mostly lower overnight, led by a 5.8% decline on Seoul's KOSPI index, as tech issues again faltered.

European bourses edged south midday on the continent.

Moderna (MRNA) traded up 55.7% pre-bell after it and partner Merck (MRK) announced late-stage clinical trial results for an mRNA cancer vaccine. Merck gained 6.2%.

On the earnings scene, Lowe's (LOW) traded down 2.6% pre-bell after the home-improvement chain reported fiscal Q2 earnings above expectations, but missed on revenue, and tempered guidance, in the morning hours.

On the economic calendar, in addition to the Fed minutes, is the August Atlanta Fed Business Inflation Expectations bulletin at 10 am ET, followed by the weekly EIA petroleum status report at 10:30 am ET.

In pre-market action, Bitcoin traded at $64,329, and 10-year US Treasuries offered 4.70%. Spot gold commanded $4,367 an ounce

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Asia Markets

Update: Technology Leads US Equity Indexes Lower as 30-Year Yield Touches 19-Year High, Crude Oil Extends Gains

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes declined, with chipmakers helping drive technology to the bottom of sector charts, after the 30-year government bond yield touched levels last seen around the 2007 global financial crisis and crude oil prices continued to march higher.The Nasdaq Composite dropped 1.3% to 26,289.71, and the S&P 500 declined 0.7% to 7,691.76 on Tuesday. The Dow Jones Industrial Average slipped 0.2% to 53,343.40. Technology and industrials led decliners. Energy, healthcare and consumer staples topped the gainers.Among companies with market capitalizations exceeding $200 billion each, nine of the top 10 decliners were from the technology sector, according to data compiled by Finviz. Of those nine firms, seven were related to the semiconductor industry. The leader of the pack was Sandisk (SNDK), down 9.2%.US Treasury yields retreated after midday. The 30-year yield fell 2.6 basis points to 5.28% after touching 5.34% intraday, the highest since 2007.The increase in the 30-year yield to a 19-year high comes amid concerns that an imminent escalation in the Middle East sent Brent crude prices above $90 a barrel and will fan fears of inflation, according to a D.A. Davidson research note Tuesday.The household saving rate has plummeted to 2.7% from 6.4% in early 2024, and the housing wealth effect is negative for the middle bulge given falling real house prices, Derek Holt, head of capital market economics at Scotiabank, said in a note Tuesday."When you've got no growth in inflation-adjusted disposable income in the US, and you hit them with higher energy costs, the case for absorption is higher than the case for pass through," Holt said in the note.The front-month US West Texas Intermediate crude oil contract rose 0.8% to $85.18 per barrel, and global benchmark North Sea Brent edged up 0.3% to $91.15 per barrel a day after the deadline to reach a permanent peace deal with Iran expired."There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran," President Trump posted on his social media platform. The Strait of Hormuz will remain closed until the US meets the conditions of an interim deal signed with Iran in June, Reuters reported Tuesday, citing Iran's negotiator Mohammad Baqer Qalibaf in state media.On the same day, Trump posted an image that showed the Strait of Hormuz as "New U.S. Territory." More than 80% of vessel transits through the Strait of Hormuz over the past two weeks have taken the Omani route - a UN-authorized shipping channel that Iran vehemently opposes - according to Kpler, which tracks ships using transponders and satellite data, CNN reported.Gold futures dropped 1.8% to $4,392.70, and silver futures slumped 4% to $63.57.In economic news, US housing starts plunged 12% sequentially to a seasonally adjusted rate of 1.24 million units last month, the Census Bureau and the Department of Housing and Urban Development said. The consensus was for 1.35 million in a Bloomberg-compiled survey.In company news, ExxonMobil (XOM) remains committed to growing Permian volumes, with a new 20-year integrated midstream agreement with Targa Resources (TRGP) supporting its long-term growth targets, UBS Securities said in a note Monday. Shares of Targa jumped 7.1%, the top gainer on the S&P 500.

Dow JonesNasdaq CompositeS&P 500$SNDK$TRGP$XOM
Asia Markets

Update: Technology Pushes US Equity Indexes Lower as 30-Year Yield Touches 19-Year High, Crude Oil Rises

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes fell, with technology leading sectors lower, after crude oil advanced as the Iran geopolitics worsened and the 30-year government bond yield touched levels seen around the 2007 global financial crisis.The Nasdaq Composite dropped 1.2% to 26,331.2, and the S&P 500 declined 0.6% to 7,702.1 after midday Tuesday. The Dow Jones Industrial Average slipped 0.2% to 53,367.1. Technology, industrials and communication services led decliners. Healthcare, energy, and consumer staples topped gainers.Most US Treasury yields retreated after midday. The 30-year yield fell 2.5 basis points to 5.29% after touching 5.34% intraday, the highest since 2007.The increase in the 30-year yield to a 19-year high comes amid concerns that an imminent escalation in the Middle East sent Brent crude prices above $90 a barrel and will fan fears of inflation, according to a D.A. Davidson research note Tuesday.The front-month US West Texas Intermediate crude oil contract rose 0.7% to $85.06 per barrel, and global benchmark North Sea Brent edged up 0.4% to $91.27 per barrel a day after the deadline to reach a permanent peace deal with Iran expired on Monday."There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran," Trump posted on his social media platform. "The Hormuz Strait is open and operating. All water mines have been removed or detonated."The Strait of Hormuz will remain closed until the US meets the conditions of an interim deal signed with Iran in June, Reuters reported Tuesday, citing Iran's negotiator Mohammad Baqer Qalibaf in state media. On the same day, Trump posted an image that showed the Strait of Hormuz as "New U.S. Territory."Hormuz maritime traffic remains at high risk after a vessel was struck by an "unknown projectile," according to media reports citing the UK's maritime agency. The United Arab Emirates said its air defences "detected two ballistic missiles launched from Iran toward the country, with the first falling outside the country's territorial waters, while the second fell within the territorial waters," according to a report from Al Jazeera, a Middle Eastern broadcaster.Gold futures slipped 1.2% to $4,421.70, and silver futures slumped 3.2% to $64.09.In economic news, US housing starts plunged 12% sequentially to a seasonally adjusted rate of 1.24 million units last month, the Census Bureau and the Department of Housing and Urban Development said. The consensus was for 1.35 million in a Bloomberg-compiled survey.Pending home sales fell 2.3% in July, compared with expectations for no change in a Bloomberg-compiled survey and a 4.8% drop in June, according to the National Association of Realtors.US industrial production rose by 0.2% in July, compared with expectations for a 0.3% gain in a Bloomberg-compiled poll, and an upwardly revised 0.3% increase in June.In company news, ExxonMobil (XOM) remains committed to growing Permian volumes, with a new 20-year integrated midstream agreement with Targa Resources (TRGP) supporting its long-term growth targets, UBS Securities said in a note Monday. Shares of Targa jumped 7.3%, the top gainer on the S&P 500.

Dow JonesNasdaq CompositeS&P 500$TRGA$XOM
Asia Markets

Exchange-Traded Funds Lower as US Equities Decline After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV fell. Actively traded Invesco QQQ Trust (QQQ) declined 1.4%.US equity indexes fell after midday Tuesday amid rising crude oil prices, while the 30-year government bond yield hovered close to levels seen around the 2007 global financial crisis.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each rose about 1.3%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) shed 2.5%; iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) also declined.The State Street SPDR S&P Semiconductor (XSD) shed 6%, and iShares Semiconductor (SOXX) was down 5.5%.FinancialThe State Street Financial Select Sector SPDR (XLF) added 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 1.2%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 1.2%.CommoditiesCrude oil rose 0.7%, and the United States Oil Fund (USO) added 0.4%. Natural gas gained 1.1%, and the United States Natural Gas Fund (UNG) was up 1.6%.Gold on Comex fell 1.2%, and the State Street SPDR Gold Shares (GLD) was down 1.3%. Silver slipped 3.4%, and iShares Silver Trust (SLV) was down 3.1%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) was up 1.4%. The Vanguard Consumer Staples ETF (VDC) added 1.2%, and iShares Dow Jones US Consumer Goods (IYK) rose 1.3%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was up 0.6%. VanEck Retail ETF (RTH) added 0.8%, and the State Street SPDR S&P Retail (XRT) rose 0.6%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) added 1.7%. iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were higher as well. IShares Biotechnology ETF (IBB) climbed up 0.8%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) shed 1.2%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also in the red.CryptocurrencyIn midday activity, bitcoin (BTC-USD) rose 0.6%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) added 0.7%, ProShares Ether ETF (EETH) was up 0.5%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was down 0.2%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH