US equity futures fell sharply on Thursday as rising Treasury yields underscored a deteriorating macroeconomic backdrop. S&P 500 futures declined 0.5%, Nasdaq 100 contracts slid 1%, and Dow futures eased 0.3%. Treasury notes and bonds across the curve extended the previous session’s surge, as signs of faster economic growth and mounting price pressures pushed expectations for further Federal Reserve rate hikes higher.
The move in rates coincided with fading optimism over diplomatic progress between Iran, the US, and GCC nations, prolonging the effective blockade on regional oil exports. The prospect of persistently tight financial conditions continued to weigh on AI hyperscalers and chipmakers, just as the sector was poised to extend its record-breaking pace of debt issuance. Shares of Nvidia, Marvell, Intel, Amazon, and Alphabet were down between 1% and 3%. Meta also slipped 2%, paring this week’s gains as investors reassessed the potential returns on its newly launched AI agent tools.
