U.S. stock futures held steady on Thursday following a mixed session on Wall Street, where rising Treasury yields and elevated oil prices weighed on major indexes.
The S&P 500 advanced 0.21% to close at 7,710.70, the Dow Jones Industrial Average gained 0.22% to 53,463.11, and the Nasdaq Composite rose 0.16% to 26,331.09. The Philadelphia Semiconductor Index fell more than 2% as chip stocks lagged the broader market.
Treasury yields eased after the U.S. Department of the Treasury announced plans to double its buyback operations for long-dated bonds starting September 9. The 30-year Treasury yield dropped 9.9 basis points to 5.186%, following a peak of 5.337% on Tuesday—the highest level since June 2007. The Treasury will increase buyback sizes for nominal coupon securities ranging from 10-year to 30-year maturities from $2 billion to $4 billion per operation, citing strong market demand.
Corporate earnings and partnerships also influenced market sentiment. Marvell Technology surged nearly 10% after announcing an expanded partnership with Alphabet’s Google to develop custom AI semiconductor products. The deal includes a warrant allowing Google to purchase up to 59 million Marvell shares at $206.58 each. Stifel estimated the agreement could generate up to $120 billion in revenue for Marvell over six-and-a-half years.
Moderna led gains with a 177% surge after its mRNA melanoma treatment, developed in collaboration with Merck, succeeded in a late-stage trial. Merck’s stock climbed 12.6% in tandem. Lowe’s advanced 2.3% despite lowering its full-year sales guidance, while Target lifted its annual sales target for the second consecutive quarter, sending its shares up 4.3%.
Oil prices remained elevated as Brent crude futures rose 0.63% to $91.40 per barrel. Geopolitical tensions in the Strait of Hormuz continued to support prices, with former President Donald Trump stating the U.S. maintains "complete control" of the strait. Iran has demanded the U.S. meet conditions, including ceasing hostilities and unfreezing assets, before restarting negotiations.
Federal Reserve meeting minutes from July revealed that most policymakers viewed further rate hikes as likely if inflation did not ease. Three regional Fed presidents dissented against holding rates steady, citing concerns over persistent inflation pressures, particularly amid ongoing Middle East conflicts that could disrupt supply chains.
Analysts cautioned that while the Treasury’s buyback move may provide temporary relief, long-term rate pressures could resurface. Peter Tuz of Chase Investment Counsel noted that geopolitical de-escalation with Iran and lower energy costs would be the next major catalyst for markets, though he warned that September and October often present seasonal volatility.
