Stock futures slip as 10-year Treasury yield crosses 5% for the first time since 2007: Live updates

Stock futures slip as 10-year Treasury yield crosses 5% for the first time since 2007: Live updates

Traders on the floor of the New York Stock Exchange on Oct. 12, 2023.

Source: NYSE

Stock futures dipped Thursday evening as traders focused on a recent run higher in the 10-year Treasury yield.

Futures tied to the Dow Jones Industrial Average were down 63 points, or 0.2%. S&P 500 futures fell 0.3%, and Nasdaq 100 futures dropped about 0.4%.

The yield on the benchmark 10-year Treasury crossed 5% for the first time in 16 years. The 10-year yield hit 5.001% around 5 p.m. ET, the first time it has traded above that level since July 20, 2007 when it yielded as high as 5.029%.

In after-hours trading, shares of SolarEdge tumbled 21% as the company trimmed its third-quarter revenue guidance. Knight-Swift Transportation gained 15% after beating estimates in the third quarter on both the top and bottom lines.

The action follows a volatile day for stocks. The 30-stock Dow shed 250.91 points, or 0.75%, while the S&P 500 lost 0.85%. The Nasdaq Composite slid nearly 1%.

Stocks were rattled Thursday after Federal Reserve Chair Jerome Powell spoke in New York. He said inflation remains too high and lower economic growth will likely be needed to bring it down. Powell also said he doesn’t think rates are too high now.

“While the path is likely to be bumpy and take some time, my colleagues and I are united in our commitment to bringing inflation down sustainably to 2 percent,” he added.

Though Powell did not commit to a path forward for rates at his speaking engagement, the market seems to think the central bank will skip a hike in November.

Fed fund futures pricing reflects a 92% likelihood that the central bank will keep rates the same at the conclusion of its November meeting, according to the CME FedWatch Tool.

The major averages are on pace for losses on the week. The S&P 500 is down 1.2% through Thursday’s close, while the Nasdaq is off 1.7%. The Dow is down nearly 0.8%.

On the earnings front, investors will look for results from Comerica, Regions Financial and American Express. Oilfield services company SLB is also on deck to report.

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