U.S. equity futures are slightly higher on Friday following a tumultuous day for the Dow, which experienced its worst day since March. Investors are cautiously awaiting a key address from Federal Reserve Chairman Jerome Powell later in the session. Additionally, they are keeping an eye on the rising Treasury bond yields.
During the overnight trading session, the U.S. dollar traded at its highest levels in over two months, while the benchmark 2-year note yields reached 5.045% and 10-year paper inched higher to 4.257%. These moves are partly influenced by the sell-off on Wall Street and indications of further rate hikes from the Federal Reserve before the end of the year. The likelihood of a quarter-point hike in November is estimated to be just over 40% according to the CME Group’s FedWatch.
With the anticipation of Powell’s speech, stock market futures suggest a muted start to the trading day. Contracts linked to the S&P 500 anticipate a 10-point gain at the opening bell, while futures tied to the Dow Jones Industrial Average indicate a 97-point bump. The Nasdaq, which focuses on technology stocks, is expected to rise by 12 points at the start of trading.
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