U.S. equity futures edged lower on Thursday, reflecting heightened risk aversion from rising Treasury yields and a surge in oil prices. The S&P 500 futures contract slipped 0.15% to 7,755.0 points, Nasdaq‑100 futures fell 0.2% to 30,699.5 points and Dow Jones futures dropped 0.1% to 51,652.0 points after the major indexes closed flat in a whipsaw session on Wednesday.
The 10‑year Treasury yield crossed the 5.2% threshold, briefly reaching a fresh 19‑year high, as investors priced in the possibility of further Federal Reserve rate hikes amid persistent inflation concerns voiced by several officials.
Crude oil prices jumped more than 3% following a Houthi missile strike on Saudi Arabian infrastructure and renewed hostilities between Yemen's Houthi rebels and Saudi forces. The escalation sparked brief hopes of diplomatic de‑escalation after reports that the United States and Iran discussed a phased arrangement to reopen the Strait of Hormuz.
In corporate news, Oracle shares slid over 5% after the software giant issued a force‑majeure notice to the developer of its New Mexico AI data center, dubbed Project Jupiter, citing delays in securing power. The company seeks to defer payments if the facility is not operational by 2028. Blue Owl Capital, the unit developing the data center, fell 3% alongside Oracle.
Meta Platforms rose 4.5% after unveiling a new line of AI‑enabled smart glasses and expanding features for its Muse virtual assistant, positioning the firm as a standout performer in the tech sector.
Separately, U.S. President Donald Trump and Chinese President Xi Jinping concluded bilateral talks in Washington, focusing on trade and artificial intelligence. The meeting followed an extension of the existing trade truce between the two nations to early January.
