US stock futures were little changed on Thursday, as a retreat in oil prices and Treasury yields offered some relief to investors, though fresh geopolitical tensions and mixed tech earnings kept sentiment in check. Dow futures edged up about 0.1%, while S&P 500 and Nasdaq 100 contracts gained roughly 0.1% and 0.2%, respectively, following Wednesday's rebound that snapped a three-session losing streak.
Oil remains the biggest macro risk
Brent crude hovered near $95 a barrel, while WTI stayed above $90, as markets assessed the impact of renewed US-Iran strikes. Elevated energy prices continue to fuel inflation concerns, keeping pressure on central banks. Kathleen Brooks, research director at XTB, told Barron's that a more durable improvement in sentiment would likely require oil to move back toward early-summer levels and tensions in the Middle East to cool.
Treasury yields ease, offering some relief
The global bond selloff lost momentum on Thursday, with the 10-year US Treasury yield slipping to around 4.77%. This provides some respite for equities, particularly expensive technology shares that have been hit hard by rising yields. However, borrowing costs remain elevated, and markets are still pricing in the possibility of another Federal Reserve rate hike this month.
Broadcom shows how high the AI bar has become
Broadcom shares fell more than 5% in premarket trading despite another strong quarter. Revenue reached $29.6 billion, up 86% year-over-year, with adjusted earnings of $3.32 per share. The company guided fourth-quarter revenue to about $34.8 billion. While JPMorgan analysts remained positive on Broadcom's infrastructure position, Morgan Stanley called the results impressive but raised questions about its future share of the tensor-processing-unit market. The reaction underscores that even robust AI growth may no longer satisfy investors when expectations are already extreme.
Snowflake delivers the kind of beat investors wanted
In contrast, Snowflake shares jumped about 24% in premarket trading after second-quarter revenue rose 35% to $1.55 billion. Product revenue climbed 37% to $1.49 billion, and the company raised its fiscal 2027 product revenue forecast to $6.07 billion. The results reinforced the view that Snowflake is becoming a direct beneficiary of enterprise AI spending, rather than just a software company with tangential exposure.
Friday's jobs report could reset the Fed trade
Attention now turns to the August employment report, due Friday at 8:30 am ET. Private employers added just 38,000 jobs in August, according to ADP, the weakest pace since January. Economists surveyed by The Wall Street Journal expect the official report to show 53,000 jobs added and unemployment holding at 4.1%. A surprisingly strong number could revive pressure on Treasury yields and reinforce expectations for tighter Fed policy. A weak report could do the opposite but may also raise fresh questions about the health of the US economy.
For more on how futures are reacting to these dynamics, see our earlier coverage on Dow futures sliding on yield and oil pressure and the Nasdaq futures drop as yields hit 19-year highs. Additionally, the tech selloff at the start of September highlights the sensitivity of the sector to rate expectations.
This article is for informational purposes only and does not constitute financial advice.
