Tech stocks pulled back after a series of record highs earlier this week, as traders recalibrated to rising Treasury yields. The Nasdaq Composite opened lower, after hitting intraday highs at the close. It declined 0.3% at the open, trailing the rally that saw the index peak earlier in the session.
The 10‑year Treasury yield ticked up to 4.96%, inching closer to the 5% threshold that has been a key driver of equity volatility. This rise has pushed risk‑averse investors back into bonds, putting downward pressure on the broader market.
Brent crude hovered just below $100 a barrel at $99.60, while WTI slipped to $89.97, reflecting uncertainty over U.S.–Iran tensions. Oil prices remain a bellwether for inflation expectations, and the market is watching for any breakthrough in the diplomatic talks.
U.S. mortgage rates climbed above 7%, reaching their highest level since May 2024, adding to the cost‑of‑borrow backdrop. Higher borrowing costs are a concern for both homeowners and the housing market, which feeds into wider economic sentiment.
Fed Governor Michael Barr and Chicago Fed President Austan Goolsbee are set to speak later in the day, with markets watching for further clues on monetary policy. Their remarks may signal whether the Fed will keep rates steady or lean toward a pause.
Investors will also await September PMI data, expected to confirm steady economic growth, while futures on the major averages show muted movements as the market digests the latest data. The overall tone remains cautious amid a backdrop of tightening yields and oil‑price volatility.