Wall Street possibly eyes for a red start on Wednesday, October 7 as US stock futures slipped as Treasury Yields and oil prices jumped ahead of Federal Reserve's meeting minutes.
In addition to these global cues, several stocks moved sharply in premarket trade due to company specific developments, with Constellation Brands and SpaceX fell, while Neogen gained
Constellation Brands shares dropped nearly 5% in premarket trade after the company reported quarterly results and reportedly issued weaker-than-expected guidance on full year earnings. SpaceX shares tumbled 2.34% following reports that the Elon Musk owned company is seeking to raise about $40 billion to buy chips from Nvidia, marking the biggest-ever debt financings for the AI development push.
Meanwhile, Neogen shares gained nearly 15% premarket after the food and animal safety company beat quarterly earnings and revenue estimates and raised its fiscal 2027 revenue.
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What to expect from Wall Street Today?
US stock futures slipped before the opening bell on Wednesday, with Nasdaq futures dropping 0.67% to 31,271.5, S&P 500 declining 0.32% to 7,849 and Dow Jones Industrial Average trading 0.56% lower at 51,524 by 5 pm IST.
This comes as brent crude oil prices rose above the $100-a-barrel mark on Wednesday, continuing gains from the previous session as persistent risks to Middle East energy flows outweighed signs of improving supply from the region. The renewed attacks by Iran on vessels in the Strait of Hormuz dampened optimism at a time when shipments through the waterway were approaching prewar levels, lifting Brent toward $102 a barrel.
Additionally, US Treasury yields rose, with the 30-year Treasury bond rising 5 basis points to 5.70%, highest since 2002 while the benchmark 10-year Treasury was up 6 basis points to 5.32% as bond sell-off deepens amid concerns of investors over inflation and elevated energy prices. Overseas too, bond sell-off continued, with the yield on the 10-year French bond climbed 12 basis points to trade at 4.87% and 10-year U.K. Gilt yield climbed 7 basis points to 5.44%.
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Investors are also focusing on minutes from the Federal Reserve's September meeting for clues on whether rate hikes will continue after September rate hike. Markets are especially looking at the possibilit for a rate hike in December. Market is now estimating a 78% chance that the Fed will keep rates unchanged at its next meeting, according to the CME Group's FedWatch tool.
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