Stock Futures Hold Steady as Investors Await Key Inflation Data Amid Rising Yields

U.S. stock futures held steady in evening trading on Wednesday, following a broad sell-off on Wall Street driven by rising Treasury yields and oil prices. Investors are cautiously awaiting key inflation data that will be critical in shaping expectations for the Federal Reserve's interest rate decision next week.

As of 8:33 PM ET (00:33 GMT), Dow Jones Futures were up 0.2%, S&P 500 Futures had gained 0.1%, and Nasdaq 100 Futures also edged 0.1% higher, according to market data.

Wall Street Declines on Yield and Oil Concerns

The muted futures activity followed a third consecutive day of losses for the major U.S. indexes. On Wednesday, the Dow Jones Industrial Average fell 0.8%, the S&P 500 lost 0.5%, and the Nasdaq Composite dropped 0.6%.

Market sentiment was pressured by a surge in energy prices and government bond yields. Brent crude, the international oil benchmark, settled above $100 a barrel for the first time since July, fueling concerns about persistent inflation. Concurrently, the benchmark 10-year Treasury yield climbed to 4.84%, its highest level since November 2023, increasing borrowing costs and weighing on equity valuations.

Inflation Reports in Focus Ahead of Fed Meeting

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Investors are now turning their attention to crucial economic releases. The Producer Price Index (PPI) is due on Thursday, followed by the more closely watched Consumer Price Index (CPI) on Friday. These reports will provide the latest snapshot of inflationary pressures in the U.S. economy.

The data is particularly significant ahead of the Federal Reserve's upcoming policy meeting on September 15-16. According to the source, traders are currently pricing in a 60% probability of an interest rate hike at the meeting, and the inflation readings could sway that outlook.

Corporate Spotlight

In company news, Apple (NASDAQ:AAPL) shares finished Wednesday's session down 0.3% despite unveiling its first foldable smartphone, the iPhone Duo, and new iPhone 18 models. The stock saw a modest recovery in after-hours trading, rising 0.6%.