U.S. stock futures pointed to a weaker open on Thursday, with the Dow Jones Industrial Average expected to fall 0.7% to 53,080 points, its lowest level since early in the month. The Nasdaq 100 was projected to decline 0.8% to 29,180, as investor sentiment soured following disappointing quarterly results from Walmart.
Walmart’s U.S. comparable sales missed expectations in the second quarter, with pressure from pharmaceutical pricing weighing on margins. The retailer’s shares dropped 6% in pre-market trading, pulling down peers including Costco, TJX Companies and Home Depot. The declines followed Walmart’s warning that pricing pressure across key categories would persist through the second half of the year.
The broader market faced headwinds from rising oil prices and climbing U.S. Treasury yields. Brent crude futures rose 2.6% to $94.04 per barrel, the highest level in nearly four weeks, while WTI crude advanced 2.5% to $87.95. Analysts at UBS cited elevated geopolitical risks in the Middle East as a key driver, warning that reduced exports from the region could further tighten global supply.
Swiss equities extended losses, with the SMI down 0.45% as Logitech and Swiss Re led declines of nearly 3% each. The losses came despite a modest rebound in long-dated U.S. Treasury yields after the previous day’s sharp drop following the U.S. Treasury’s announcement of increased buybacks of longer-dated bonds. The 30-year Treasury yield fell sharply on Wednesday before stabilizing, while the U.S. dollar weakened against the euro and Swiss franc.
Semiconductor stocks were among the hardest hit globally. Wolfspeed, a U.S. manufacturer of silicon carbide chips, tumbled 12% in pre-market trading after reporting a 24.1% year-over-year revenue decline in its fiscal fourth quarter and a loss per share of $2.81. European chipmakers Infineon and STMicroelectronics fell 1% and 1.8%, respectively, in sympathy. Deere & Co bucked the trend, rising nearly 4% after posting better-than-expected quarterly results and forecasting a strong 2027 for the U.S. agricultural sector.
Coty shares plummeted 16% after the company provided no fiscal-year outlook and described the current year as a transitional period. The company’s revenue declined 5% year-over-year in the latest quarter, reflecting weaker demand in its fragrance and beauty segments.
Cryptocurrency-linked stocks surged as Bitcoin approached $70,000, rising to an intraday high of $69,994. Robinhood Markets, Coinbase and Strategy all gained between 4% and 9% in pre-market trading. Analysts attributed the rally to hopes for regulatory clarity in the U.S. and a more favorable U.S. Treasury yield environment. Meanwhile, UBS downgraded Aryzta to ‘Sell’ from ‘Buy’, citing a challenging operating environment, while raising its price target for Sonova.
In Swiss corporate news, Centiel surged 12.8% following its recent market debut, while Valartis climbed 15.9% on positive half-year outlook commentary. DocMorris added 2.8% after reporting progress toward break-even, reversing a 6% decline from the prior session. Swiss Prime Site rose 1.1%, while Zug Estates remained unchanged. Implenia fell 5% as investors took profits following the previous day’s gains tied to earnings results.
The SMI ended Thursday’s session little changed, with Roche and Novartis gaining 0.6% each to offset broader weakness. The index had risen nearly 0.5% the prior day on strength in pharmaceutical heavyweights.
