U.S. stock futures steady after Wall St hit by higher yields, oil

Wall Street remained relatively stable Tuesday evening as U.S. stock futures hovered around current levels, despite a challenging three-day trend of declines. The S&P 500 Futures settled at 7,714.50 points, displaying neutrality, while the Nasdaq 100 Futures experienced a minor dip of 0.1% to 29,569.75 points. Similarly, Dow Jones Futures remained steady at 53,393.0 points.

The previous trading day saw the S&P 500 drop by 0.7%, the Dow Jones Industrial Average fall by 0.2%, and the NASDAQ Composite plunge by 1.3%, marking its sharpest decline since early July. Technology and semiconductor stocks took the brunt of the sell-off, with the Philadelphia Semiconductor Index plunging 5%, Nvidia (NVDA) dropping 2.3%, and Micron Technology (MU) falling 7%.

Rising Treasury yields have intensified the discount rate applied to future earnings, particularly affecting high-growth technology stocks. The 30-year U.S. Treasury yield rose to 5.335% during Tuesday's session, marking the highest level since June 2007, while the 10-year yield stood at approximately 4.71%. Global government bond yields also surged to multi-year peaks, fueled by inflation worries, fiscal deficits, and heavy government borrowing.

Oil prices added to inflation concerns, with Brent crude extending gains above $91 per barrel in Asian trading on Wednesday due to ongoing uncertainty surrounding the U.S.-Iran conflict and the Strait of Hormuz. President Donald Trump confirmed that no talks with Iran were scheduled and that a U.S. naval blockade remained in place, while Iran denied any negotiations.

Investors are also closely watching the Federal Reserve's minutes from their July meeting, slated for Wednesday. Market participants will scrutinize these minutes for insights into the policy outlook following three regional Fed presidents who dissented from the decision to keep interest rates unchanged. Despite recent market volatility, the S&P 500 remains only about 1.3% below its record closing high reached last Thursday, highlighting the market's resilience.