Nasdaq futures declined Wednesday as global benchmark oil prices surged above $100 a barrel for the first time since July. Futures for the Dow Jones Industrial Average, Nasdaq 100, and S&P 500 experienced declines of 0.6%, 0.4%, and 0.3%, respectively, in the latest trading session. Yesterday, the three major U.S. equities indexes experienced a decline at the onset of a holiday-shortened trading week, coinciding with an increase in crude prices. The blue-chip Dow saw a decrease of 1.2%, translating to approximately 625 points. Oil prices maintained their upward trajectory on Wednesday following a statement from U.S. Central Command, or CENTCOM, indicating that its forces “destroyed five Iranian crude oil carriers” the previous day. This was accompanied by a denial of Iran’s assertion that it had attacked two American ships in retaliation.
Brent crude futures, the international benchmark, surpassed the $100-a-barrel mark for the first time since July 23, recently trading at $100.60, reflecting an increase of 2.8%. U.S. benchmark West Texas Intermediate prices experienced an increase of 2.3%, reaching $95.20. Meanwhile, Treasury yields persist at levels close to their peak in nearly three years, driven by apprehensions that elevated oil prices will sustain inflationary pressures. The 10-year Treasury yield recently stood above 4.81%, reflecting an increase of nearly two basis points from Tuesday’s close, in anticipation of an expected announcement from the Treasury Department regarding the scale of a buyback operation. Traders currently perceive a 60% probability that the Federal Reserve will increase interest rates at its upcoming meeting, according to the CME Group’s FedWatch tool.
Investors will be closely monitoring the August Consumer Price Index reading scheduled for Friday, as it may significantly impact the central bank’s forthcoming decisions. Bitcoin was around $79,000, reflecting a modest increase over the past 24 hours. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, ticked lower to 98.70. Gold futures experienced an increase of 0.3%, reaching a price of $4,450 per ounce. In corporate news, shares of Apple edged lower ahead of a 1 p.m. event at which it is expected to unveil its latest products, with John Ternus hosting for the first time as CEO after taking over for Tim Cook earlier this month. Apple’s first foldable iPhone is anticipated to be included in the new lineup, alongside the premium models of the iPhone 18. The other Magnificent Seven mega-cap tech stocks exhibited a mixed performance in premarket trading, while the Roundhill Magnificent Seven ETF remained close to flat.
The most significant shift in either direction was observed in Meta Platforms, whose shares increased by approximately 5% following the introduction of its “personal AI agent” Muse by the parent company of Facebook. Tesla shares pointed down 1% after leading the septet with a 4% gain yesterday. Chip and digital storage stocks experienced a slight decline ahead of the market opening, with the iShares Semiconductor ETF down approximately 1% and the Roundhill Memory ETF lower by 0.5%. In the aftermath of earnings announcements, ServiceTitan experienced a decline of 17%, while Casey’s General Stores saw a decrease of 11%. Conversely, Chime Financial recorded an increase of 9%.
