U.S. stock futures held near the flatline Wednesday morning as government bond yields pulled back from multiyear highs reached earlier this week, offering some relief after a global bond selloff rattled markets.
Futures on the Dow Jones Industrial Average and S&P 500 were little changed, while Nasdaq-100 futures slipped 0.1%. The 30-year U.S. Treasury yield stood at 5.282%, down slightly on the day, after hitting its highest level since 2007 on Tuesday. The U.S. 10-year yield was at 4.694%.
The S&P 500 logged its third consecutive decline on Tuesday, dragged lower as government borrowing costs across the globe surged to multiyear highs. Japan's 10-year yield touched a 30-year peak, bund yields on German 30-year debt rose to their loftiest mark since 2011, and French 30-year rates climbed to territory last seen in 2008.
Bond yields have since stabilized. A range of forces have been cited to explain the bond selloff, with The Wall Street Journal noting that heavy debt issuance from technology firms and mounting worry about government budget shortfalls were among the main culprits.
Oil prices remained a pressure point. Brent crude traded above $91 a barrel Wednesday as dimming prospects for a deal to end the U.S.-Iran war continued to unsettle markets. Elevated crude prices have stoked inflation concerns that have contributed to pushing bond yields higher globally, according to CNBC .
Tech stocks were a drag on futures. Oracle stock slipped roughly 1% in premarket trading after the Journal, citing sources, said OpenAI's second-quarter results let investors down — revenue rose 18% sequentially, but the company's losses deepened at the same time. Shares of Alphabet and chipmakers Marvell and Intel also declined in premarket trading.
Asian markets retreated, with semiconductor names such as SK Hynix and Samsung coming under particular pressure. Chinese humanoid robot maker Unitree surged more than fivefold in its trading debut.
On the corporate earnings front, retailers Target and Lowe's were due to report results Wednesday morning. The Federal Reserve is also set to release minutes from its July policy meeting Wednesday afternoon. July's meeting produced three dissenting votes in support of a rate increase, and market participants are expected to comb the minutes for a fuller picture of that internal disagreement, according to CNBC.
