US pre-open: Futures weaken as bond yields climb, crude extends gains
2nd Sep 2026 11:16
(Sharecast News) - Wall Street futures were in the red ahead of the open on Wednesday as bond yields continued to push higher, with traders increasingly concerned that rising crude prices could complicate the inflation outlook.
As of 1245 BST, Dow Jones futures were down 0.16%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.25% and 0.55% softer, respectively.
The Dow closed 419.02 points lower on Tuesday as a global bond sell-off and surging oil prices weighed on equities amid escalating hostilities in the Middle East.
The yield on the benchmark US 10‑year Treasury climbed to 4.814% early on Wednesday, its highest level since November 2023, while government borrowing costs also moved up across the UK, Germany and France. Japan's 10‑year yield remained near multidecade highs.
In terms of commodities, crude futures edged higher in early trade, with West Texas Intermadiate for October delivery rising 0.21% to $90.41 a barrel, while Brent for November added 0.46% to $95.09 a barrel, extending the recent upswing in oil markets.
On the macro front, US mortgage applications edged up 0.8% in the final week of August, partially reversing the 1.0% decline seen a week earlier, according to the Mortgage Bankers Association. The slight improvement came as benchmark mortgage rates were broadly steady, with the 30‑year fixed rate nudging just one basis point higher to 4.79%, despite ongoing pressure on long‑dated Treasury yields. Applications to refinance a mortgage, which are typically more sensitive to short‑term interest rate moves, slipped 1.1% week-on-week, while applications to purchase a home rose 2.2%.
Still to come, July factory orders data will be published at 1500 BST, while ADP employment change figures will follow at 1315 BST and the Federal Reserve's Beige Book will be released at 1900 BST.
In the corporate space, Broadcom, Snowflake and Hewlett Packard Enterprise will all report earnings after the close of trading.
Reporting by Iain Gilbert at Sharecast.com