U.S. stock futures are lower in premarket trading and extending Wednesday’s selloff as interest rates continue to rise.

Wednesday’s broad-based weakness came as higher rates rattled investor sentiment; PMI data suggests U.S. businesses are continuing to expand. The benchmark 10-Year Yield rose 14 basis points on Wednesday and hit its highest level in nearly 20 years. Yields are consolidating this morning and higher oil prices are pressuring equities.

WTI crude futures rose over 2% yesterday and are up over 1% today and back above $93 a barrel. New York Fed President John Williams said this morning that another interest rate hike this year would be a “reasonable” expectation. Expectations of a rate hike at the October FOMC meeting rose to 75% according to the CME FedWatch tool.

Today, investor focus will be on yields, oil prices, and headlines from the meeting between President Donald Trump and China’s President Xi Jinping. The U.S. and China have extended a truce by two months to keep tariffs lower for longer and rare earths flowing, U.S. Treasury Secretary Scott Bessent said Wednesday.

Snapshot

• Oil (/CL) – Oil futures are up 1.51% to $93.52 per barrel
• Gold (/GC) – Gold futures are down 0.49% to 4,296.70 per ounce
• Bitcoin (/BTC) – The cryptocurrency futures are down 1.28% to 83,435
• VIX (/VIX) – The CBOE Volatility Index is up 6.46% to 16.15
• U.S. Dollar ($DXY) – The dollar index is up 0.20% to 101.296

Big Premarket Movers

Advancers:

• Everpure (P) +5.34%
• Devon Energy (DVN) +1.19%
• Exxon Mobil (XOM) +0.85%
• APA Corp. (APA) +0.82%
• Chevron (CVX) +0.80%

Decliners:

• MGM Resorts International (MGM) -9.11%
• Darden Restaurants (DRI) -4.11%
• Marvell Technology (MRVL) -3.12%
• Intel (INTC) -2.85%
• Coherent (COHR) -2.63%

Economic Data (ET)

• 8:00 AM: Fed’s Barkin Speaks
• 8:30 AM: Jobless Claims
• 8:50 AM: Fed’s Hammack Speaks
• 10:00 AM: New Home Sales
• 10:10 AM: Fed’s Paulson Speaks
• 10:30 AM: EIA Natural Gas Inventories
• 11:00 AM: Kansas City Fed Mfg. Index
• 1:00 PM: 7-Year Note Auction
• 4:30 PM: Fed Balance Sheet

Notable Earnings

• Premarket: BB, DRI, SNX
• Postmarket: COST, SCHL
• Premarket Friday: N/A
• Postmarket Friday: N/A

Upgrades/Downgrades

• JPMorgan upgrades Paychex (PAYX) from Underweight to Neutral
• JPMorgan upgrades CoreWeave (CRWV) from Neutral to Overweight
• BNP Paribas upgrades Nebius Group (NBIS) from Neutral to Outperform
• HSBC upgrades Dollar General (DG) from Hold to Buy
• Bernstein upgrades Quanta Services (PWR) from Market Perform to Outperform
• JPMorgan upgrades Macerich (MAC) and Welltower (WELL) from Neutral to Overweight
• Piper Sandler downgrades Rollins (ROL) from Overweight to Neutral
• Arete downgrades Etsy (ETSY) from Buy to Neutral
• Citi downgrades Dropbox (DBX) from Neutral to Sell
• William Blair downgrades Stitch Fix (SFIX) from Outperform to Market Perform

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

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