U.S. stock futures traded mixed late Tuesday as the 30-year Treasury yield climbed to its highest level in over 24 years, crossing 5.6 percent during the regular session. The 10-year yield approached 5.3 percent, nearing 2007 highs.
As of 11:09 p.m. EDT, Dow futures rose 0.30 percent and S&P 500 futures gained 0.15 percent, while Nasdaq-100 futures fell 0.03 percent. All three benchmark indexes closed lower on Tuesday: the Dow fell 0.26 percent, the S&P 500 slipped 0.17 percent, and the Nasdaq Composite declined 0.09 percent.
Fed rate-hike expectations softened after New York Federal Reserve President John Williams said late Tuesday there is no urgency to raise benchmark interest rates and that the central bank has "time to gather more information" before its October meeting. Markets are now pricing a 47.1 percent chance of a 25-basis-point rate hike next month, down sharply from 70.9 percent one day prior.
Mohamed El-Erian, chief economic adviser at Allianz, said the "protracted surge in yields is driven by forces far beyond energy markets," signaling sustained headwinds for household and corporate borrowing costs. Oil prices moved in the opposite direction, with November Brent crude futures at $103.10 a barrel and November WTI crude at $89.43 per barrel.
Tim Ghriskey, senior portfolio strategist at Ingalls Snyder, warned that consumers are "getting squeezed" by higher rates and gas prices, which could trigger stock sell-offs in consumer-focused names. The Dow is headed for a quarterly decline, while the S&P 500 and Nasdaq Composite are climbing for the quarter—a split that reflects divergent investor confidence across sectors.
Capricor Therapeutics Inc. (CAPR) shares surged over 17 percent in overnight trading late Tuesday following new Hope-3 extension data showing substantially slower upper-limb deterioration in patients who switched to Deramiocel, the company's lead candidate.
