US stock futures were largely unchanged on Thursday as investors awaited a speech by Federal Reserve Chair Jerome Powell and Treasury yields continued to rise. The Dow Jones Industrial Average futures remained flat, while S&P 500 futures saw a slight increase of 0.1%. Nasdaq 100 futures rose by almost 0.3%. The ongoing increase in Treasury yields has put pressure on stocks, with the benchmark 10-year yield closing in on reaching 5% for the first time in 16 years. Investors will be closely watching Powell’s comments for any indication of future interest rate hikes.
As third-quarter earnings season continues, investors are also paying attention to the potential impact of elevated interest rates on corporate performance. Tesla CEO Elon Musk expressed concerns that higher borrowing costs would make it difficult for customers to afford the company’s electric vehicles. Tesla shares fell nearly 5% in pre-market trading. On the other hand, Netflix shares jumped around 14% after the company reported a surge in subscriber numbers and announced price increases in the US.
In addition to Powell’s speech, investors will be focusing on the results of American Airlines, AT&T, and Blackstone. American Airlines’ results are particularly significant following United Airlines’ bleak profit outlook, which negatively affected other major airlines this week. Economic data on weekly jobless claims and existing home sales are also expected. Overall, investors are awaiting guidance from Powell and closely monitoring the impact of rising Treasury yields and interest rates on various sectors of the market.