The 30-year Treasury yield topped 5.6% on Tuesday, its highest in more than 24 years, while New York Fed President John Williams said there's no "urgency" to raise rates.
- Traders now see a 47.1% chance of an October rate hike, down from 70.9% a day earlier, according to CME FedWatch.
- Investors await August PCE inflation data on Wednesday, the last day of the third quarter.
- Capricor surges more than 17% overnight on new data for its experimental cell therapy.
U.S. stock futures were trading mixed in the overnight session late Tuesday as long-dated bond yields eased back marginally after climbing to multi-decade highs during the day.
As of 11:09 p.m. EDT, Dow futures were up 0.30% and S&P 500 futures had gained 0.15%, while Nasdaq-100 futures slipped 0.03%.
On Tuesday, all three benchmark indexes closed lower. The Dow Jones Industrial Average fell 0.26%, the S&P 500 slipped 0.17% and the Nasdaq Composite declined 0.09%.
| Index | Move | Close |
| Dow Jones Industrial Average | -0.26% | 51,349.92 |
| S&P 500 | -0.17% | 7,670.84 |
| Nasdaq Composite | -0.09% | 26,797.54 |
Key US Market Drivers
U.S. stock markets were pressured by rising Treasury yields even as oil prices pulled back. The 30-year Treasury bond yield crossed 5.6% during regular trading hours, jumping to levels not seen in over 24 years. Meanwhile, the 10-year yield edged to 5.3%, nearing a fresh 2007 high.
Simultaneously, oil prices edged lower on Tuesday. At the time of writing, Brent crude futures expiring in November were trading at $103.10 a barrel, while WTI crude futures expiring in November traded at $89.43 per barrel.
Mohamed El-Erian, chief economic adviser at Allianz, said in a post on X, “This is not the first trading session where sovereign bond yields and oil prices have decoupled. In fact, it is happening with greater frequency—a reminder that the protracted surge in yields is driven by forces far beyond energy markets, and it is increasingly only a matter of time before borrowing costs for households and corporates face the additional headwind of even wider credit spreads.”
Meanwhile, New York Federal Reserve President John Williams said late Tuesday there is no need “for urgency” to raise benchmark interest rates, at least for the moment, adding that there is “time to gather more information” before the central bank’s October meeting.
According to data from the CME FedWatch tool, markets are pricing in a 47.1% chance of a 25-basis-point rate hike next month. This is down from 70.9% a day ago.
Meanwhile, key economic releases due this week include the Personal Consumption Expenditures Price Index, expected on Wednesday, which could provide further insight into the trajectory of the Fed’s upcoming policy. Labor market data and government payrolls reports are also expected this week.
"PCE tomorrow is going to be big, so we'll see where that takes us," Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, reportedly told Reuters.
"The amount of negativity from consumers here, especially with higher rates, higher gas prices, they're getting squeezed — the consumers getting squeezed here, and we might start seeing (stocks sell off), at least in the consumer names."
Additionally, Wednesday will be the final day of the third quarter. The Dow Jones Industrial Average is headed lower for the quarter, while the S&P 500 and the Nasdaq Composite are climbing.
Trending Stocks To Watch
Capricor Therapeutics Inc. (CAPR): Shares surged more than 17% in the overnight session late Tuesday after its new Hope-3 extension data showed substantially slower upper-limb deterioration in patients who switched to Deramiocel, an investigational cell therapy to reduce inflammation and tissue scarring.
Iovance Biotherapeutics Inc. (IOVA): The company was on the retail radar after shares closed more than 31% higher on Tuesday after the biotech firm recently raised its 2026 revenue outlook.
DraftKings Inc. (DKNG): The digital sports and gaming company’s stock fell more than 7% at close after reports indicated that Kalshi is in advanced discussions with Tiger Global and Dragoneer to raise $1 billion in new financing for prediction markets.
Trade Desk Inc. (TTD): The advertising technology platform drew retail attention amid recent stock declines as weaker-than-expected revenue growth and growing traders’ concerns about the outlook for programmatic advertising as marketing budgets shrink weighed on shares.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged higher at the time of writing, while the Invesco QQQ Trust (QQQ) slipped lower.
The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.37% amid ‘neutral’ sentiment.
Asian markets opened mixed on Wednesday. South Korea's KOSPI was trending lower, while Japan’s Nikkei 225, China’s SSE Composite and Australian stocks climbed at the open.
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