US stock index futures were mixed on Wednesday, extending the previous session’s weakness amid renewed pressure from higher bond yields. S&P 500 and Dow Jones Industrial Average futures were little changed, while Nasdaq 100 futures fell about 0.5%.
Large-cap technology names traded mostly lower in premarket action as concerns over surging aggregate credit supply pushed longer-dated yields higher. Shares of Oracle, AMD, Micron, and Marvell declined. Rising borrowing costs were further supported by elevated energy prices, with hawkish rhetoric from both the US and Iran reinforcing expectations of continued disruptions to oil flows from the Persian Gulf.
The interest-rate outlook will face another key test with the release of the FOMC minutes later today.
In corporate news, TJX, Lowe’s, and Target slipped between 1% and 4% after reporting their second-quarter results. In contrast, Analog Devices outperformed other semiconductor stocks on the back of strong guidance. In healthcare, Moderna’s share price doubled and Merck jumped 10% after a trial of their jointly developed vaccine showed it significantly reduced melanoma recurrence.
