Stock futures fall after Treasury yield rebound sparks sell

A trader works on the floor of the New York Stock Exchange during morning trading on August 18, 2026 in New York City.
Michael M. Santiago | Getty Images

Stock futures fell early Friday, pointing to an extension of the sharp pullback on Wall Street that put the major averages on pace for weekly declines

S&P 500 futures traded 0.9% lower, while Nasdaq-100 futures fell 1%. Dow futures added 703 points, or 1.3%

During Thursday’s session, the S&P 500 and Nasdaq Composite dropped 0.9% and 1%, respectively. That pullback left the S&P 500 down 1.9% for the week, and the Nasdaq off by 2.5% — putting them on pace to snap a three-week winning streak. The Dow Jones Industrial Average has fallen 1.8% week to date, on track for back-to-back weekly losses

The downturn this week also impacted stocks beyond the U.S., with the MSCI All Country World Index on track for a weekly decline of 1.5% — its biggest drop in five weeks

European stocks edged higher in early trade on Friday, after regional bourses and sectors opened in mixed territory

The pan-European Stoxx 600 index was last seen 0.1% higher, while London’s FTSE 100 was flat and Germany’s DAX gained 0.2%

In Asia, Japan’s Nikkei 225 closed 0.30% lower, while South Korea’s Kospi rose 0.88%. Australia’s benchmark S&P/ASX 200 fell 0.27%. Mainland China’s CSI 300 closed 0.57% higher

Thursday’s losses came as long-dated U.S. Treasury yields resumed their march higher, after efforts by the government to stem the recent bond market rout failed to ease investor fears about inflation

“Unlike QEund asset purchases,” wrote Ulrike Hoffmann-Burchardi, chief investment officer of the Americas at UBS. “Any buybacks must be financed elsewhere, most likely through increased bill issuance or adjustments to other parts of its funding program.”

“In effect, the operation reshapes the maturity profile of debt held by investors rather than reducing the amount of debt markets must absorb. It neither removes the government’s financing needs nor resolves concerns about Treasury supply,” she wrote

Ross Stores shares jumped more than 7% after hours on better-than-expected results for the second quarter

38 Min Ago

Treasury yields ease in early trade

Longer-dated U.S. government bond yields steadied on Friday, as investor jitters over the Treasury Department’s extended debt repurchase program continued to weigh on markets

Yields on the 30-year U.S. Treasury note, the primary focus of the buyback plan, was flat at 5.2371%

The 10-year U.S. Treasury yield — the key benchmark for mortgages, auto loans and credit card debt — was largely unchanged at 4.6882%. The shorter-dated 2-year Treasury note yield, which more closely follows short-term Federal Reserve rate decisions, was also flat at 4.1828%

1 Hour Ago

Oil prices dip but crude heads for second weekly gain

Crude oil prices were lower Friday morning, but remained on-course for a second straight weekly gain

Traders are assessing Washington’s threat of “crushing” economic sanctions on Iran, dashing hopes of a diplomatic deal to end the war and restore shipping levels through the Strait of Hormuz

Brent crude futures were 0.8% lower at 4:50 ET on Friday. U.S. West Texas Intermediate futures for October delivery were 0.89% lower

Brent crude is nonetheless on course for a monthly gain of nearly 6%, following last week’s 5.95% rise. The international benchmark closed at over $93 a barrel on Thursday for the first time since July 24

Brent crude price.

— Jenni Reid

2 Hours Ago

Bitcoin on track for 20% weekly gain as investor optimism floods back

Bitcoin was on track for a weekly gain of around 20% early on Friday, following a spate of positive developments for the world’s largest cryptocurrency

Bitcoin was last seen at $75,343.01, up from $62,836.88 at the start of the week. 

Investor sentiment improved further on Thursday largely due to a last-ditch push from the White House and crypto industry leaders to get the Clarity Act across the finish line in the coming weeks

Read the full story here

— Joseph Wilkins

3 Hours Ago

Asia-Pacific markets were mixed

Japan’s Nikkei 225 closed 0.30% lower at 66,016.36, while South Korea’s Kospi rose 0.88% to 6,912.95

Australia’s benchmark S&P/ASX 200 fell 0.27% to 9,058.90

Hong Kong’s Hang Seng index was up 1.06% in the last hour of trade on Friay, while mainland China’s CSI 300 closed 0.57% higher at 4,618.895

—Justina Lee

3 Hours Ago

European stocks struggle for direction

European stocks struggled for direction in early trade on Friday, with regional bourses and sectors opening in mixed territory

The pan-European Stoxx 600 index opened just above the flatline, London’s FTSE 100 added 0.14%, while Germany’s DAX and France’s CAC were seen marginally lower

Miners and banks led gains, while healthcare and media stocks underperformed the wider index

— Joseph Wilkins

3 Hours Ago

Oil prices fall as markets weigh prolonged U.S.-Iran conflict

Oil prices inched lower on Friday as investors continued to weigh the prolonged U.S.-Iran conflict. Brent crude futures declined 0.38% to $93.42 a barrel while the U.S. West Texas Intermediate crude futures slipped 0.55% to $86.35 per barrel

U.S. Vice President JD Vance said economic pressure remains Washington’s “most effective tool” against Iran, describing the confrontation as a “delicate dance” in which both sides are seeking to exert leverage

Vance said Iran had faced greater pressure than the U.S. in recent weeks. His remarks followed President Donald Trump’s threat to launch what he called the “most crushing economic operation ever taken against any country,” including severe financial penalties on countries that help Tehran evade sanctions

Vance acknowledged that U.S. gasoline prices remain elevated, but said they had fallen “substantially” as the U.S. military helped move more oil and gas through the Strait of Hormuz

—Lee Ying Shan

4 Hours Ago

Gold moves higher, on track for third straight week of gains

Gold moved higher on Friday and is on track for its third consecutive weekly gain, aided by a weaker dollar amid the fallout of the Treasury’s intervention in the bond market

Spot gold was last seen trading 0.64% higher at $4,546.88 per ounce, while gold futures were 0.85% higher at $4,610. per ounce

The Treasury’s liquidity-support announcement for long-duration bonds this week sent the greenback lower, offering a boost to the yellow metal. 

— Joseph Wilkins

6 Hours Ago

Japan headline inflation rate hits highest this year as energy prices bite

Japan’s headline inflation rate hit 1.9% in July, the highest level this year, as energy costs increase amid the Iran war

Core inflation — which strips out prices of fresh food but includes energy — was in line with expectations, coming in at 1.8%

Energy prices rose for the first time since November 2025 despite government subsidies, due to high oil costs from the conflict in the Middle East. That showed up in wholesale inflation, which came in at 7.2% for July, with electricity charges being the largest contributor

Fresh food prices also saw a sharp spike, increasing 7% compared to a 3.9% rise in June

—Lim Hui Jie

7 Hours Ago

U.S. bond intervention is like ‘paying your mortgage with your credit card,’ JPMorgan’s Sullivan says

The U.S. government’s efforts to manage pressure in the Treasury market may merely shift the problem down the road as a surge in global debt issuance tests investor demand

The Treasury is effectively buying back longer-duration bonds while issuing shorter-dated bills, a strategy that can provide temporary relief but leaves the underlying debt burden intact, James Sullivan, JPMorgan’s co-head of global fundamental research, told CNBC’s “Squawk Box” on Friday. 

The U.S. Treasury Department, led by Secretary Scott Bessent, on Wednesday announced it would at least double the size of its government debt buybacks, starting Sept. 9 and running through Nov. 4. 

—Lee Ying Shan

8 Hours Ago

Mainland China and Hong Kong shares open mixed

Mainland China and Hong Kong shares were mixed on Friday, amid broad losses in other Asian markets

Hong Kong’s Hang Seng index rose 0.64%, while mainland China’s CSI 300 was marginally lower

The declines in the Hang Seng were led by basic materials and industrials sectors, up 2.32% and 1.38%, respectively

—Justina Lee

10 Hours Ago

Asia-Pacific markets open lower, tracking Wall Street losses

Asia-Pacific markets traded lower early Friday

Japan’s Nikkei 225 fell 0.92% while the Topix slipped 0.40%

The Kospi dropped 1.07%, while the small-cap Kosdaq declined 2.44%

Australia’s benchmark S&P/ASX 200 was 0.21% lower

—Justina Lee

11 Hours Ago

Asia-Pacific markets set to open broadly lower

Asia-Pacific markets were set to open broadly lower on Friday, tracking a sharp pullback on Wall Street as as long-dated U.S. Treasury yields rebounded

Japan’s Nikkei 225 was poised to decline, with the Chicago futures contract at 65,560 and its Osaka counterpart last trading at 65,510, compared with the index’s previous close of 66,216.79

Hong Kong Hang Seng index futures were at 25,696, compared with the index’s last close of 25,698.49

Futures for Australia’s S&P/ASX 200 last traded at 8,991, while the index closed at 9,083.80

Tensions continue to simmer between the U.S. and Iran, after U.S. Treasury Secretary Scott Bessent vowed that the U.S. will create “the greatest coordinated economic isolation in the history of the world” against Iran

“If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart,” Bessent said in an exclusive interview with CNBC’s “Squawk on the Street.”

—Justina Lee

12 Hours Ago

Ross Stores jumps on earnings beat

Ross Stores shares were up 7% following the closing bell after the discount retailer reported better-than-expected results for the second quarter

The company earned $2.06 per share, excluding certain items, on revenue of $6.26 billion. Analysts polled by FactSet expected a profit of $1.95 per share on revenue of $6.16 billion

Ross also issued better-than-expected full-year earnings guidance

ROST 5-day chart

— Fred Imbert

12 Hours Ago

Stock futures open little changed

Dow Jones Industrial Average futures rose just 25 points. S&P 500 futures gained 0.1% along with Nasdaq-100 futures

— Fred Imbert

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