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US Equity Futures Slightly Lower Pre-Bell as Global Bond Yields Continue Rising

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US equity futures were mostly lower pre-bell Wednesday as traders observed global bond yields continuing to increase amid inflation concerns.

Dow Jones Industrial Average futures were 0.1% higher, but S&P 500 futures were down 0.1%, and Nasdaq futures were off 0.3%.

The US 10-year Treasury note yield reached a high of 4.814%, while borrowing costs in the UK, Germany and France also increased.

US Central Command said in a post on X that US forces completed a wave of strikes against Iranian military targets on Tuesday. Iran attacked US allies Kuwait and Bahrain in response.

President Donald Trump said he was not trying to force Iran back into negotiations. "I like our position now much better, with almost total control of the Hormuz Strait, and their economy totally collapsing," Trump said in a post on Truth Social.

Broadcom (AVGO) is scheduled to report its fiscal Q3 earnings after the market closes. Analysts polled by FactSet expect earnings of $3.22 per share on revenue of $29.24 billion.

Oil prices are lower, with front-month global benchmark North Sea Brent crude down 0.9% at $93.83 per barrel and US West Texas Intermediate crude 1.1% lower at $89.19 per barrel.

The ADP employment report for August, expected at 8:15 am ET, is seen increasing to 47,000 from 44,000 in the prior month, according to estimates compiled by Bloomberg.

July factory orders, due at 10 am ET, are expected to have gained 0.7%, compared with a decline of 0.3% previously. The Fed's Beige Book report will be released at 2:00 pm ET.

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US Equity Markets End Lower as Oil, Bond Yields Rise After US Strikes on Iran

US equity indexes ended lower Tuesday after crude oil prices and government bond yields rose following US attacks on Iranian targets.* US forces began striking Islamic Revolutionary Guard Corps targets in Iran, the US Central Command said. The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against US service members deployed to the region.* US job openings rose to 7.271 million in July, according to the Bureau of Labor Statistics, below 7.313 million expected in a survey compiled by Bloomberg.* The Institute for Supply Management's US manufacturing index fell to 54.6 in August from 55.6 in July, compared with expectations for 55.2 in a survey compiled by Bloomberg.* October West Texas Intermediate crude oil rose $4.80 to settle at $90.56 per barrel, while November Brent crude, the global benchmark, was last seen up $4.57 at $95.06.* Interactive Brokers Group (IBKR) shares fell 7%, the third-biggest drop on the S&P 500, after UBS downgraded the stock to neutral from buy.* Bunge Global (BG) shares rose 4.2% after the company agreed to sell its Rio Vermelho and Nova Unialco sugarcane mills in Sao Paulo to Cofco International.

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Update: US Equity Indexes Drop as Fresh Military Strikes on Iran Send Crude Oil Sharply Higher

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes fell amid soaring crude oil prices and a surge in the benchmark government bond yield to the highest in about 18 months as Iran vowed to inflict severe damage following Washington's strikes on targets in the Islamic Republic on Tuesday afternoon.The Nasdaq Composite fell 1.1% to 26,095.2, the S&P 500 retreated 0.78% to 7,628.3, and the Dow Jones Industrial Average slid 0.8% to 52,761.5 ahead of the market close.US forces began striking Islamic Revolutionary Guard Corps targets in Iran, the US Central Command said in a message on X, formerly Twitter. The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region. These new hostilities come as the duo traded attacks overnight into Monday, the first exchange after more than a month.Iranian media reported explosions in Bandar Abbas, Qeshm Island, Konarak, Chabahar, Jask, Sirik and Lavan, Al Jazeera, a Middle Eastern broadcaster, reported. Iran's army and the Iran Revolutionary Guards Corps promised the US would regret and face "severe punishment" for the aggression, the news report said.The front-month US West Texas Intermediate crude oil contract surged 5.6% to $90.57 per barrel, and global benchmark North Sea Brent soared 5.1% to $95.14 per barrel.Most US Treasury yields rose. The 10-year yield jumped 3.8 basis points to 4.8%, the highest since January 2025, and the two-year advanced 4.8 basis points to 4.4%.In economic news, US job openings rose to 7.271 million in July, according to the Bureau of Labor Statistics, below the 7.313 million openings expected in a survey compiled by Bloomberg, but up from the 7.182 million openings reported in June. The July level represents 4.4% of total employment, up from 4.3% in June and 4.3% a year earlier.The probability of the Federal Reserve raising its target rate by 25 basis points to 3.75%-4.0% in September surged to 66% after midday Tuesday from 40% a day ago, according to the CME FedWatch tool. The likelihood of another increase of the same magnitude in October is almost a fifth, putting into perspective a 10% chance of the rates remaining at the current level by December.

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Update: US Equity Indexes Retreat Amid Surging Treasury Yields, Higher Crude Oil Prices

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes declined amid rising crude oil prices and a surge in the benchmark government bond yield to the highest in about 18 months as Iran's geopolitics deteriorated.The Nasdaq Composite fell 0.8% to 26,158.1, the S&P 500 retreated 0.6% to 7,641.7, and the Dow Jones Industrial Average slid 0.7% to 52,821.3 after midday Tuesday.US Secretary of the Treasury Scott Bessent said the Iran blockade is "very powerful" and "we are going to economically asphyxiate this regime," Al Jazeera, a Middle Eastern broadcaster, reported. The US will announce new sanctions on "anyone that does business with the IRGC" while the US is "tracking down the IRGC's assets," Bessent was cited as saying.In a video message shared by Iranian news agencies, Iran's Parliament Speaker Mohammad Bagher Ghalibaf said the US's naval blockade against Iran amounts to a military act and that Tehran will respond militarily if it intensifies, according to Al Jazeera. If the US's "will is that we do not export oil" from the Gulf, Ghalibaf said, "no one will be able to export oil."The front-month US West Texas Intermediate crude oil contract advanced 3.8% to $89.05 per barrel, and global benchmark North Sea Brent climbed 3.1% to $93.28 per barrel.The probability of the Federal Reserve raising its target rate by 25 basis points to 3.75%-4.0% in September surged to 66% after midday Tuesday from 40% a day ago, according to the CME FedWatch tool. The likelihood of another increase of the same magnitude in October is almost a fifth, putting into perspective a 10% chance of the rates remaining at the current level by December.Most US Treasury yields rose. The 10-year yield rose three basis points to 4.79%, the highest level since January 2025, and the two-year advanced 3.5 basis points to 4.39%.

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