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US stock futures pulled back in premarket trading on Thursday as the market was caught in a tug-of-war between earnings optimism and revived inflation concerns.
Futures on the Dow Jones Industrial Average (YM=F) fell 0.6%, and the S&P 500 (ES=F) dropped 0.3%, while contracts for the Nasdaq-100 (NQ=F) retreated 0.4% after stocks slipped from record highs on Wednesday.
Markets were on edge as a global bond rout rolled on. Treasury yields remained near multidecade highs — with the 10-year yield (^TNX) at 5.28% and the 30-year yield (^TYX) at 5.66% — reflecting tightening financial conditions.
At the Fed’s September meeting, officials were unanimous in their decision to raise interest rates, citing persistently high inflation. Though recent economic data have changed the picture somewhat, inflation remains the key pressure point for the central bank. Federal Reserve Governor Chris Waller is speaking in Turkey today, providing his thinking on the path of monetary policy.
Meanwhile, investors are gearing up for the third quarter earnings season, with PepsiCo (PEP) quarterly results serving as the appetizer. FactSet estimates that the S&P 500 earnings grew 29.5% in Q3. If that figure holds, it would represent the third consecutive quarter with earnings growth above 25%.
On the economic data front, the Department of Labor will release initial jobless claims numbers at 8:30 a.m. ET.
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Oil rises as Middle East supply concerns persist amid shipping attacks
Reuters reports:
Oil prices rose on Thursday on persistent worries about supply from the key Middle East producing region amid an increase in attacks on shipping in the Gulf and the Strait of Hormuz.
Prices settled lower on Wednesday after the International Energy Agency agreed to accelerate the release of oil stocks and to prioritize diesel supplies under a plan launched in March, as governments seek to tackle record fuel prices and supply disruptions caused by the Iran war.
However, threats to oil shipping in the Gulf and the Strait of Hormuz, which carried shipments equal to about 20% of global oil and fuel before the war, have increased in October as the US-Israeli conflict with Iran enters its eighth month.
Attacks on tankers sailing through the Strait of Hormuz hit their highest last week of any week since the Iran war began as Gulf producers increase exports. The increase in attacks is occurring as more crude is flowing out of the Gulf but at higher costs and risk to cargoes and crew.
FILE PHOTO: Vessels at the Strait of Hormuz, as seen from Musandam, Oman, October 2, 2026. REUTERS/Stringer/File Photo · Reuters / REUTERS
