The benchmark US stock measures were tracking in the green before the open Friday following a sharp selloff in the previous session, when Treasury yields climbed despite the government's efforts to ease pressure in the bond market.
The S&P 500 and the Dow Jones Industrial Average rose 0.3% each in premarket activity, while the Nasdaq added 0.6%. The Dow ended the previous session with its lowest close since July 31, while the S&P 500 and Nasdaq finished at their lowest levels since Aug. 3.
Treasury yields were trending higher in premarket action, with the two-year rate increasing 0.4 basis points to 4.19% and the 10-year rate gaining 0.2 basis points to 4.7%. The 30-year rate was up 0.7 basis points to 5.24%.
Treasury Secretary Scott Bessent told CNBC in an interview on Thursday that his department could increase its planned buybacks of longer-dated Treasuries to more than $4 billion per issue.
"Part of it is signaling here and to show that we believe that the yields don't reflect the underlying fundamentals," Bessent said.
The Treasury Department earlier this week said it will at least double the size of its buybacks for longer-dated Treasuries, to $4 billion per operation.
"The $4 billion size of the buybacks is vanishingly small relative to the size of the US treasury market but is a loud symbolic signal that the Treasury does not want higher yields," Saxo Bank said in a report Thursday. "Shaping the yield curve and buying treasuries is normally a policy area for the (Federal Reserve), so it sets up an interesting tension with Fed Chair Kevin Warsh, who will speak at next week's Fed symposium at Jackson Hole, Wyoming."
West Texas Intermediate crude oil nudged up to $86.83 a barrel before the opening bell, while Brent dipped 0.1% to $93.70.
Bessent also told CNBC on Thursday that the US is looking to implement the "toughest sanctions in history" against Iran. Earlier in the week, President Donald Trump threatened to launch "economic warfare" against Iran and financial consequences for countries that seek to provide any form of support to Tehran.
Shares of Walmart (WMT) fell 0.2% pre-bell after the retail giant closed Thursday trading down 9.2% as fiscal second-quarter US comparable sales growth decelerated more than Wall Street expected, while the company issued a soft earnings outlook for the ongoing three-month period.
Ross Stores (ROST) jumped nearly 8% as the off-price apparel and home fashion chain lifted its full-year earnings outlook on the back of stronger-than-expected fiscal second-quarter results. Flowers Foods (FLO) fell 3.7% as the packaged bakery food producer cut its fiscal 2026 outlook amid a challenging operating environment.
KE Holdings (BEKE), BJ's Wholesale Club (BJ) and Buckle (BKE) are scheduled to report their latest financial results before the bell, among others.
Friday's economic calendar has the S&P Global's (SPGI) flash purchasing managers' index for August at 9:45 am ET, followed by the weekly Baker Hughes oil-and-gas rig count at 1 pm.
Gold inclined 1.7% to $4,650 per troy ounce, while bitcoin climbed 7.1% to $77,811.
