Stock futures pointed to a modest recovery on Friday after Wall Street suffered a sharp sell-off in the previous session, as rising US Treasury yields renewed concerns about inflation and government borrowing. S&P 500 futures climbed 0.25%, while Nasdaq-100 futures gained 0.5%. Dow futures also added 134 points, equivalent to 0.25%, giving investors a cautiously positive start to the final trading day of the week.
The rebound came after major US indexes posted significant losses on Thursday. The S&P 500 fell 0.9%, while the Nasdaq Composite dropped 1%, leaving the two indexes down 1.9% and 2.5%, respectively, for the week. The Dow Jones Industrial Average was also down 1.8% week-to-date, putting it on track for consecutive weekly declines and potentially ending a three-week winning streak for the broader market.
Investor sentiment remained fragile as long-term US Treasury yields resumed their climb. The rise came despite government efforts to calm the recent bond market sell-off, with concerns over persistent inflation and the growing supply of government debt continuing to weigh on investors. Higher Treasury yields can put pressure on stocks because they increase borrowing costs and can make bonds more attractive relative to riskier assets.
Markets outside the US also struggled to find a clear direction. European stocks opened mixed, with the pan-European Stoxx 600 hovering around the flatline, while the FTSE 100 gained 0.14%. Germany’s DAX and France’s CAC were marginally lower. In Asia, Japan’s Nikkei 225 declined 0.30%, while South Korea’s Kospi gained 0.88%. Australia’s S&P/ASX 200 fell 0.27%, while mainland China’s CSI 300 advanced 0.57%.
Despite the broader market pressure, some individual stocks attracted positive attention in after-hours trading. Ross Stores shares jumped more than 7% after the retailer reported better-than-expected second-quarter results, offering a bright spot for investors amid the wider market volatility. With Treasury yields, inflation concerns and corporate earnings all influencing sentiment, investors will be watching Friday’s trading session closely for signs of whether the latest sell-off is beginning to lose momentum.
source: cnbc
