On Friday, U.S. stock index futures edged higher following a challenging week featuring elevated government bond yields and geopolitical tensions affecting investor sentiment. The S&P 500 and tech-heavy Nasdaq seemed poised to end their three-week winning streak with around 2% weekly losses.
This week, markets were rattled by a surge in long-dated U.S. Treasury yields amid concerns over burgeoning government debt, increased financing costs, and persistent inflation fears, with the 30-year Treasury bond yield peaking since 2007. On Thursday, U.S. Treasury Secretary Scott Bessent noted the pressure on bond markets, hinting at further Treasury repurchases after a surprise intervention.
The stock market witnessed a partial recovery early Friday as megacap stocks gained in premarket trading, led by Meta and Tesla, both rising about 1%. Meanwhile, crypto-related firms, including Coinbase Global, showed gains as Bitcoin reached its highest level since May, following President Trump’s call for congressional action on a key crypto bill.
(With inputs from agencies.)