Stock futures declined on Thursday, widening losses for the week as investors reacted negatively to the Federal Reserve’s intention to maintain higher interest rates for longer by rising Treasury yields to multi-year highs.
The Dow Jones Industrial Average futures fell 224 points, or 0.6%, on the day. The S&P 500 futures fell by 0.9%, while the Nasdaq 100 futures fell by 1.3%. All three significant benchmarks were poised for their third consecutive session of losses.
The most recent driver of this increase was the weekly jobless claims report, which demonstrated a continuing robust labour market and may have encouraged the Fed to continue its rate hike programme. The 10-year Treasury yield reached 4.48%, its highest level in more than 15 years. In contrast to the 225,000 claims predicted by analysts surveyed by Dow Jones, weekly unemployment claims declined by 20,000 to 201,000 for the week ending September 16.
Following the release of the jobs report on Thursday, the 2-year yield reached a high of 5.19%, matching 2007 highs.