- US stock futures declined with Nasdaq-100 futures down over 1 percent on Thursday
- Rising Treasury yields hit 10-year yields at 5.14 percent, highest since 2007
- US-Iran tensions and aviation sanctions add uncertainty to energy and trade markets
US stock futures came under pressure on Thursday, with Nasdaq-100 futures sliding more than 1%, as a sharp rise in Treasury yields, higher crude prices and lingering US-Iran tensions weighed on investor sentiment.
As of the latest available data, Nasdaq-100 Futures (Dec 2026) were at 30,435.25, down 329.50 points or 1.07%. Dow Jones Futures were at 51,675, down 198 points or 0.38%, while E-mini S&P 500 Futures were at 7,724.50, down 48 points or about 0.62%.
Three factors are driving the sell-off:
1. Treasury yields spike
The US bond market remained under pressure after stronger-than-expected economic data reinforced expectations that the Federal Reserve could raise interest rates again.
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The benchmark 10-year Treasury yield climbed to around 5.14%, its highest level since July 2007, while the 30-year yield rose to about 5.44%, its highest intraday level since 2004, according to Dow Jones Newswires.
Higher yields increase borrowing costs for companies and consumers and can also put pressure on equity valuations, particularly high-growth technology stocks.
Markets are now pricing a greater probability of another Fed rate hike in October. CME FedWatch showed the probability above 75% in one reading, while Dow Jones Newswires cited a 68.6% probability on Thursday.
2. US-Iran uncertainty and aviation sanctions
Investors are also monitoring developments between the US and Iran. Talks have shown limited progress, keeping uncertainty around energy supplies and regional trade elevated.
Aviation-related sanctions coming into effect are adding another layer of uncertainty for markets, particularly as investors assess their potential impact on transport, fuel costs and regional economic activity.
3. Oil rebounds above $106
Crude prices resumed their climb as concerns over disruptions linked to the US-Iran standoff persisted.
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Brent crude rose more than 1% to trade above $104 a barrel, with prices briefly around $106, while West Texas Intermediate gained to around $93-$94 a barrel.
Higher oil prices could add to inflationary pressure and complicate the Fed's interest-rate outlook. European equities were also lower, while energy stocks gained as crude prices climbed.
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