Stock Futures Drift as Treasury Selloff Continues

By Joe Stonor

Stock futures moved sideways and 10-year Treasury yields held close to multiyear highs in cautious early European trade, as oil prices rose further on the continued stalemate in talks between the U.S. and Iran.

Markets were little moved as investors look to position ahead of crucial inflation and jobs data from the U.S. later this week. The selloff in Treasurys showed no signs of easing, however, with 10-year Treasurys hovering close to 5.240%, while 30-year yields edged higher to 5.555%. The dollar continued to strengthen in line with Treasury yields.

"Higher oil is raising inflation expectations, resilient U.S. data are keeping the Fed hawkish, and investors are demanding more compensation for duration risk," said Tickmill Group strategist Patrick Munnelly.

Oil prices are in steep backwardization, where traders pay more for near-term delivery of oil than longer-term delivery. Brent crude for November delivery--a contract that expires Tuesday--rose 0.7% to $106.04 a barrel, while December Brent crude contracts traded up 0.7% at $98.5 a barrel.

Futures for the Dow Jones Industrial Average edged 0.1% lower, while futures for the Nasdaq and S&P 500 were flat. Stocks linked to artificial intelligence showed some signs of renewed momentum. Chip makers strengthened in premarket trade, while AI-related stocks also led equity indexes in Europe, where the continent-wide Stoxx 600 gained 0.4% in early trade. ASML, the continent's most valuable company, gained over 3%. Asian indexes were largely in the red, however, with tech-heavy indexes in Japan and South Korea slipping.

Bitcoin nudged back above $84,000, while New York gold contracts edged up by 0.1%, but held below $4,200 a troy ounce.

For the day ahead, the U.S. August job openings data is the major macro release. Sam Altman will speak at OpenAI DevDay in San Francisco. Investors in U.K. government bonds will look for any clues on U.K. spending plans as Prime Minister Andy Burnham speaks at the ruling Labour Party's annual conference.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

September 29, 2026 04:45 ET (08:45 GMT)