Traders work on the floor of the New York Stock Exchange (NYSE) on September 29, 2026 in New York.
Spencer Platt | Getty Images
U.S. stock futures were lower Thursday morning, after the S&P 500 pulled back from its record high as yields hit multi-decade highs.
Dow Jones Industrial Average Futures fell 132 basis points, or 0.26%. S&P 500 Futures Contracts fell 0.15%, and Nasdaq-100 Futures Contracts were down 0.21%.
Levi Strauss Shares fell nearly 2% in extended trading after the denim retailer lowered its revenue growth forecast for the full year, while raising its profit outlook.
Wall Street is coming out of a losing session. THE S&P500 fell 0.2%, returning from the all-time high reached a day earlier. THE Dow fell more than 340 points, or 0.7%. THE Nasdaq Composite slipped 0.2%.
The Treasury sold $39 billion worth of 10-year securities on Wednesday, sparking strong demand, with indirect bidders – including global central banks – winning more than 80% of the auctions, above a 10-auction average of 72.4%. The sale helped the 10-year Treasury bond the yield moves away from its 24-year high during Wednesday’s session. The Treasury is expected to sell $22 billion worth of 30-year bonds later Thursday.
The yield on the 10-year Treasury note was last seen up 4 basis points at 5.3178%, with the 30-year Treasury bond fell by 4 basis points to 5.7064%.
In Asia, Japan’s Nikkei 225 was down 1.12% while South Korea’s Kospi lost 2.04%. Australia’s S&P/ASX 200 index was down 0.64%. Mainland China’s CSI 300 index fell 0.43%, while Hong Kong’s Hang Seng index fell 0.69%.
Rising yields have dampened investor appetite for stocks in recent weeks, particularly in segments of the market most affected by rising borrowing costs. Industrial Products, for example, is the sector’s worst-performing week to date.
Many investors, however, maintain an optimistic view of the stock market. They expect the start of earnings season to give the market the fuel it needs for the next leg up.
In the third quarter, the S&P 500 is expected to post a blended earnings growth rate of around 30%, which would be a third straight quarter of earnings growth above 25%, according to FactSet.
“If earnings remain strong, and the idea is they probably will, if expectations are met and/or higher, that’s going to support this rally – despite the fact that rates are higher,” Courtney Garcia, senior wealth advisor at Payne Capital Management, told CNBC’s “Closing Bell.” “It’s not going to derail the market.”
On Thursday, investors will await the results of PepsiCo before opening. Traders will also be watching weekly jobless claims data.
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