US stock futures moved higher on Friday as investors assessed elevated Treasury yields, developments in oil markets and quarterly results from Costco (NASDAQ:COST).
At 03:12 ET, Dow futures were up 63 points, or 0.1%, while S&P 500 futures gained 11 points, or 0.1%. Nasdaq 100 futures rose 126 points, or 0.4%.
The moves followed a mixed session on Wall Street on Thursday. The Dow Jones Industrial Average and S&P 500 closed lower, while the Nasdaq Composite gained 0.01%.
Treasury yields have risen during the week alongside elevated oil prices and expectations surrounding the Federal Reserve’s interest-rate path.
“One important theme at the moment is that Treasuries continue to sell-off with oil but that breakevens aren’t moving, with pretty much all the move being driven by real yields,” Deutsche Bank analysts said in a note.
US 10-Year Treasury Yield Reaches 5.2%
The benchmark US 10-year Treasury yield reached 5.2% by Thursday’s close, its highest level since 2007, while the 30-year yield climbed to its highest level since 2004.
The 10-year yield also recorded its largest two-day increase since US President Donald Trump announced his “Liberation Day” tariffs the previous year.
The moves came as markets assessed higher oil prices, US economic data and expectations for Federal Reserve monetary policy.
The Federal Reserve increased interest rates by 25 basis points the previous week, with inflation pressures linked to energy prices among the factors cited in the supplied material.
Recent sessions have also seen periods in which rising oil prices have coincided with higher bond yields and lower equity prices. The relationship between oil prices and longer-term interest rates, however, depends on a broader range of economic and inflation expectations.
Oil Prices Fall as Markets Assess US-Iran Reports
Oil prices declined on Friday following reports that the United States and Iran were exploring a phased arrangement that could include reopening the Strait of Hormuz.
Both major crude benchmarks had risen by as much as 5% during Thursday’s session before reducing their gains following reports of talks between the two countries.
Earlier gains followed Saudi Arabia’s statement that it had intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthis towards locations including Taif and the Yanbu region on the Red Sea.
The developments drew attention to Saudi energy infrastructure and export routes after earlier damage to the East-West pipeline affected crude shipments to Yanbu.
