U.S. stock futures edged lower Monday premarket as rising bond yields pressured equities at the start of earnings season. S&P 500 futures fell 0.1 percent, with Nasdaq-100 contracts also moving negative. Dow Jones Industrial Average futures traded roughly flat.
The 10-year Treasury yield reached 5.28 percent, marking more than 20-year highs. Brent crude oil traded above $100 per barrel. Yet the stock market has held its ground despite bond volatility and Middle East conflict. The S&P 500 closed Friday less than 1 percent from its record high, while the Nasdaq Composite approached an all-time high.
A weak jobs report earlier in the week reduced Fed rate increase expectations this year, according to fed funds futures data. Sean McLaughlin, chief options strategist at All Star Charts, said the market's resilience is striking: "The market has had every reason to sell off, and it hasn't sold off yet, and to me it feels like it's running out of time." He added that "the path of least resistance appears to be higher."
Some strategists counter that elevated oil prices, AI-related risks, and deteriorating market breadth warrant an imminent pullback.
Monday's economic calendar includes S&P Global's and the Institute for Supply Management's September purchasing managers' indexes. S&P Global US services PMI is expected at 58.7, matching the prior reading. The ISM services index is projected at 55.2, slightly below the prior 55.4. ISM services prices paid are expected at 73, up from 72.6.
Levi Strauss Co. Applied Digital, PepsiCo, and Delta Air Lines report this week. Third-quarter earnings season begins in earnest by mid-October.
