US equity futures fell sharply on Thursday as Treasury yields rebounded to multi-decade highs, tightening credit conditions for the corporate sector. S&P 500 futures declined 0.6%, while Nasdaq 100 and Dow futures each lost around 1%. Oil and fuel prices jumped on reports that the US is planning additional strikes against Iran, raising the risk to the recent recovery in seaborne crude exports from the Middle East and worsening the inflation outlook.
Minutes from the latest FOMC meeting showed that most policymakers expect further rate increases will be required to bring inflation under control. Combined with growing budget deficits, this pushed Treasury yields higher. AI infrastructure stocks led declines for a second straight session, reflecting their sensitivity to broader risk sentiment and to higher borrowing costs, which weigh on AI-related capital expenditure. Intel, Lam Research, Marvell Technology, and Micron Technology each fell about 2%. Broadcom slipped 1.5% after issuing $60 billion in debt to help finance Anthropic’s expansion.
