Lates News

During European trading hours on Wednesday, U.S. stock index futures were sluggish, as rebounding U.S. Treasury yields weighed on investor sentiment while the market awaited the release of the minutes from the Federal Reserve's most recent Federal Open Market Committee meeting. The U.S. Treasury market remained under pressure, with the 10-year yield rising above 5.30% and the 30-year yield hovering around 5.69%. Persistent inflation concerns, an expanding fiscal deficit, and a sharp increase in AI-related bond issuance are the main factors keeping yields elevated. Escalating geopolitical conflicts in the Middle East have driven oil prices higher, further intensifying inflationary pressure and sustaining market expectations for rate hikes. However, recent weakening in U.S. employment data has reduced expectations for aggressive Fed tightening. According to the CME FedWatch tool, traders currently see only about a 22% probability that the Fed will raise rates at its October meeting.