Stock futures rise as falling Treasury yields signal less pressure on Fed to hike rates: Live updates

Equity futures moved up on Thursday, while Treasury yields pulled back, as investors grew hopeful that the Federal Reserve may leave interest rates unchanged this month.

S&P 500 futures rose 0.4%, while Nasdaq-100 futures edged up 0.2%. Dow Jones Industrial Average futures climbed 339 points or 0.6%.

The benchmark 10-year Treasury note yield last traded around 4.75%, seeing declines after Federal Reserve Governor Christopher Waller said he'd be "inclined to support" holding rates steady barring any surprises in upcoming inflation data. On Wednesday, the yield hit its highest level since November 2023.

Bets among fed funds futures traders that the central bank would raise rates in a couple weeks fell to 54.6% after his statement, according to the CME FedWatch tool. That's down from 63.2% a day ago. Waller's remarks, along with the sharp rise in the yen, supported the drop in yields more broadly and offered some momentum to the market even as oil prices continued their climb Thursday.

West Texas Intermediate crude futures traded 1% higher at around $92 per barrel, while Brent futures advanced less than 1% to above $96. Rising crude has put upward pressure on Treasury yields recently, as investors worry elevated energy prices would drive inflation and force the Federal Reserve to increase rates.

However, U.S. yields were already under pressure Thursday prior to Waller's comments as the Japanese yen rallied against the U.S. dollar. The yen was last up more than 1% against the dollar at 156.1 yen.

"A stronger JPY could be the thread that helps unravel a lot of the macro overhangs weighing on equities to the extent it continues (a sustained rally in the yen would in theory remove upward pressure from global yields)," wrote Adam Crisafulli of Vital Knowledge.

Snowflake shares popped more than 23% in the premarket after the company reported better-than-expected second-quarter earnings and revenue as well as issued strong guidance. Conversely, shares of Broadcom dropped nearly 4% following its latest quarterly results, with the company offering a disappointing revenue forecast for the fiscal fourth quarter.

Wall Street is coming off a winning session, with the major U.S. stock indexes snapping three-day losing streaks. The 2-year Treasury yield hit 4.41%, the highest level since January 2025. The 10-year Treasury yield briefly touched 4.818%, the highest mark since November 2023.

Both ended the day off their highs, however. Though investors are worried about inflation, New York Federal Reserve President John Williams told CNBC on Wednesday he sees higher Treasury yields as the result of solid economic prospects following record-breaking corporate profits in the second quarter. Dollar hits lowest level in more than a week The U.S.

Dollar Index crossed below 99 on Thursday, hitting levels it last traded on Aug. 26 where it had a low of 98.898. The greenback also hit a session low against the yen of 155.50, which is the lowest level it has traded since Aug.

3. Its almost 2% decline against the yen is the biggest loss the dollar has experienced since July 30, when it fell 2.37% against the Japanese currency. — Gina Francolla and Davis Giangiulio Trade deficit jumps on computer imports; jobless claims edge higher Initial jobless claims were little changed last week while the U.S. trade deficit surged on rising imports of technology-related goods as the artificial intelligence buildout continues to gain steam, according to economic data released Thursday.

The trade shortfall surged by 24.4% in July, hitting $88.6 billion, which was below the Dow Jones consensus estimate for $90 billion, according to the Commerce Department. Capital goods imports jumped $14.4 billion, including $6.9 billion in computers, $6.6 billion in accessories and $1.2 billion in semiconductors.

The deficit with Mexico jumped $7.2 billion to $27.5 billion while the shortfall with Canada plunged by $3.7 billion to $3.2 billion. In the labor market, first-time filings for unemployment benefits totaled a seasonally adjusted 206,000 for the week ending Aug. 29, up 2,000 from the prior week and slightly higher than the 205,000 forecast.

Continuing claims, which run a week behind, rose by 8,000 to 1.78 million. — Jeff Cox Fed Governor Waller says he 'would be inclined to support' holding interest rates steady at September meeting Federal Reserve Governor Christopher Waller said Thursday he is leaning toward keeping interest rates steady at the central bank's September meeting provided there are no surprises from upcoming inflation data.

In remarks that seem to contrast with statements last week from Chairman Kevin Warsh, Waller expressed confidence in the current inflation trends, saying that tariff impacts likely have been muted and higher energy prices haven't had a substantial impact in other parts of the economy.

While he conceded that inflation is "meaningfully above" the Fed's 2% target, he noted that recent trends "suggest we are finally seeing some signs of disinflation." "If this continues in the data due over the next two weeks, I would be inclined to support holding the target for the federal funds rate at its current setting," Waller said in remarks for a Reuters interview.

Read more. — Jeff Cox Nvidia to buy open-source AI platform Hugging Face at nearly $13 billion Nvidia agrees to buy open-source AI platform Hugging Face at nearly $13 billion, making it the chipmaker's second-biggest purchase to date.

"Together, we will scale Hugging Face's platform, strengthen its infrastructure and expand access to AI for developers and institutions worldwide," Nvidia CEO Jensen Huang wrote in a blog post on Thursday. The agreement makes it Nvidia's second biggest acquisition. In December, the company purchased assets from chipmaker Groq for $20 billion.

Hugging Face approached Huang in the summer about the deal, according to Hugging Face CEO Clément Delangue, who spoke to CNBC's "Squawk Box."

"During the summer, I think we realized that Hugging Face and open source AI in general was at the turning point, and that it needed more, more resources, more scale, more visibility," Delangue said. — Ananya Chetia Broadcom, Campbell's Co and Ultragenyx Pharmaceutical among the stocks making moves before the bell Check out the companies making the biggest moves premarket: Broadcom — The chipmaker lost 2.5% as investors responded negatively to the company's revenue forecast for the fourth quarter, which came in at $34.8 billion compared to a $35.03 billion estimate.

Fourth quarter non-GAAP operating margin projections came in at 66%, below the 66.5% estimate. Broadcom reported revenue of $29.59 billion for the third quarter and adjusted earnings of $3.32 per share. Campbell's Company – The food and beverage company fell almost 7% after it reported earnings guidance for its fiscal year 2027 that came in below expectations.

Campbell's expects earnings of between $1.65 and $1.80 per share in fiscal 2027, compared to a FactSet consensus for $1.83 per share. It also forecasted for revenue growth to contract at a wider rate than expected in the fiscal year.

Ultragenyx Pharmaceutical – Shares plunged more than 46% after the company reported that Phase 3 trial results for its drug to treat Angelman syndrome, a rare genetic neurodevelopmental disorder, did not achieve its primary endpoint. The company said it was disappointed in the result and will evaluate the program to develop the drug, as well as implement significant cost reductions.

Read here for the full list. — Darla Mercado and Davis Giangiulio Japan on 'heightened alert' over currency moves as yen pops Japanese authorities are "neither satisfied nor reassured" by recent market moves as the yen pops to a one-month high against the U.S. dollar, Atsushi Mimura, Japan's Vice Finance Minister for International Affairs, said Thursday.

"We remain on a state of heightened alert," the top foreign exchange official said, according to a Reuters report. The sharp move in the yen comes with traders on high alert for any signs of a currency intervention, though traders say that increased expectations for Bank of Japan rate hikes may explain the strengthening in the Japanese currency.

Read more here. — Jenni Reid Treasury yields move lower as traders await fresh data after bond sell-off Treasury yields moved lower across the curve on Thursday, as traders look ahead to key services and jobs data for more insights into the domestic economic picture following a sharp sell-off in global bond markets.

The 10-year Treasury note yield, the main benchmark for mortgages, auto loans and credit card debt, fell more than 2 basis points to 4.7680%. The longer-dated 30-year Treasury yield, which is typically sensitive to geopolitical events, dropped 2 basis points to 5.2433%.

The shorter 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, was more than 2 basis points lower at 4.3609%.

Dutch central bank moves gold bars out of U.S. and Canada, citing ‘crisis preparedness’ The Dutch central bank (DNB) has transferred approximately 86 tons of gold out of the U.S. and Canada to the U.K., seeking to shore up its contingency planning in view of "increasing geopolitical unrest."

Just over one-quarter of the central bank's gold reserves held in New York and Ottawa had been shifted to London between March and August, DNB said Wednesday. The transferred gold is now stored with the Bank of England because gold stored there must meet international trade standards and is recognized as "the world's most easily tradable gold," DNB said, adding that the move strengthens its "crisis preparedness."

Europe markets open mixed European markets struggled for direction at Thursday's open, with Germany's DAX index up 0.1% as the U.K.'s FTSE 100 and France's CAC 40 slipped below the flatline. Telecoms stocks gained 0.64% as household goods fell 1.04%. — Jenni Reid Asia-Pacific markets close mixed Asia-Pacific markets close mixed on Thursday.

Japan's Nikkei 225 slid 0.17% to end the trading day at 64,214.48, while the Topix added 0.5% to 4,102.04. South Korea's Kopsi rose 0.26% to 6,579.58, but the small-cap Kosdaq declined 1.71% to 790.21. Australia's S&P/ASX 200 was up 0.46% at 9,020.1.

Mainland China's CSI 300 closed 0.1% higher at 4,552.58, while Hong Kong's Hang Seng lost 0.48% as of its last hour of trade. — Lee Ying Shan Yen jumps against U.S. dollar The yen surged by around 1% against the U.S. dollar Thursday morning, brushing a one-month high of 156.34 per dollar.

Traders are watching for any signs of intervention to support the Japanese currency following the joint yen-buying intervention between the U.S. and Japan at the end of July.

U.S. Treasury Secretary Scott Bessent told CNBC on Monday: "It's my belief that the Japanese government and that the BOJ will do the things that will lead to a stronger yen." — Jenni Reid Dollar dips as global bond yields ease The U.S. dollar was 0.22% lower against a basket of major currencies early Thursday, as the recent sell-off of government debt eased. Treasury yields were broadly lower at 1:55 a.m.

ET while the yield on the Japanese 10-year, which crossed 3% this week for the first time in three decades, dropped 5 basis points to 2.964%. Germany's 10-year bund yield, the euro area benchmark, was slightly lower at 3.369%.

Yields on U.K. gilts with 2-year, 10-year and 30-year durations were all down by around 3 basis points. — Jenni Reid Treasury yields ease after 10-year hits highest level since November 2023 The 10-year Treasury note yield is down almost 2 basis points at 4.776% on Thursday after notching a fresh multiyear high on Wednesday as inflation and debt concerns pressured global government borrowing costs.

The yield on the 10-year Treasury note — the main benchmark for mortgages, auto loans and credit card debt — reached 4.818%, its highest level since November 2023, on Wednesday. The 30-year Treasury yield was over one basis point lower at 5.25%, while the yield on the 2-year note was also down around one basis point at 4.317%.

One basis point equals 0.01%, and yields and prices move inversely. — Lee Ying Shan Oil little changed as traders assess Iran-U.S. military strikes Oil was little changed Thursday, as traders assessed the latest hostilities in the Middle East. Futures for international benchmark Brent crude for November delivery was flat at $95.60 a barrel.

U.S. West Texas Intermediate futures for October rose 0.15% at $91.15 per barrel. Kuwait's army on Thursday said it was confronting hostile missile and drone attacks from Iran, a day after President Donald Trump said that renewed hostilities between the U.S. and Iran would not last "too long."

"Any new escalations or a deterioration in shipping conditions in either the Straits of Hormuz or Bab al-Mandeb would tighten the physical market and push prices up," said Hani Abuagla senior market analyst at XTB MENA, adding that energy flows through the Strait of Hormuz continued to see disruptions. — Justina Lee Japanese yen strengthens with focus on Bank of Japan's policy move The Japanese yen continued to strengthen Thursday after appreciating 0.9% to 158.7 the day before.

Treasury Secretary Scott Bessent had called on the Bank of Japan to use sound monetary policy to anchor inflation expectations and prevent excessive volatility in the yen during his meeting with Bank of Japan Governor Kazuo Ueda on the sidelines of the G20 finance ministers' summit. The currency was last trading at 158.55 against the greenback.

"The key question is whether they will signal that they share the view that Abenomics has run its course, the yen is undervalued, and the BOJ needs to accelerate the pace of rate hikes," Nomura said in a note on Wednesday.

The bank estimates Japan's neutral interest rate is approaching 3%, although it said such a level would be difficult to justify based on domestic conditions alone and partly reflects rising U.S. rates. The BOJ will hold its monetary policy meeting on Sept 17-18. — Lee Ying Shan South Korea's Kospi rises, Japan's Nikkei 225 opens flat Asia-Pacific markets opened mixed Thursday.

South Korea's Kospi rose 0.86%, while the small-cap Kosdaq fell 0.19%. Japan's Nikkei 225 was little changed, but the Topix was 0.65% higher.

Australia's S&P/ASX 200 inched up 0.12%. — Lee Ying Shan Asia-Pacific markets set for subdued open as global bond rout, Mideast crisis dent sentiment Asia-Pacific markets were set for a subdued open Thursday, as a global bond sell-off and the escalation in the Middle-East conflict weighs on sentiment.

Japan's Nikkei 225 was poised to rise, with the Chicago and Osaka futures contracts last at 64,560 and 64,480 respectively, compared with the index's previous close of 64,325.64. Hong Kong's Hang Seng index futures were at 25,367, slightly higher than the index's last close of 25,311.21. Futures for Australia's S&P/ASX 200 last traded at 8,979, compared with the index's previous close of 8,978.4.

Government bonds sold off globally on Wednesday, extending a rout that has driven borrowing costs to multi-decade highs. — Lee Ying Shan Broadcom pares back losses after 5% after-hours dip Shares of chipmaker Broadcom climbed back into break-even territory after dipping by 5% immediately after reporting earnings on Wednesday. Shares were down just 0.22% as of 6:12PM ET.

The company's revenue forecast for the fourth quarter came in at $34.8 billion versus a $35.03 billion estimate.

Fourth quarter non-GAAP operating margin projections were placed at 66%, below the 66.5% estimate from Wall Street. — Tobias Burns Stocks making the biggest moves in after-hours trading A slate of companies issued their latest earnings reports after the bell, and their stocks posted notable moves: Snowflake – Shares surged more than 20% after the company's second-quarter results topped analyst expectations.

For the quarter, Snowflake posted adjusted earnings of 62 cents per share on revenue of $1.55 billion. Hewlett Packard Enterprise – The enterprise technology company slipped 4%. HPE is calling for earnings growth of 16% to 20% for the fiscal year ending October 2027, while the FactSet consensus sought a 18.7% increase.

Petco – The pet products retailer jumped about 9%. Adjusted EBITDA margin in the second quarter came in at 8.2% versus the StreetAccount consensus estimate of 7.4%. Excluding a tariff benefit, the metric came in at 7.7%, which would still beat analysts' expectations.

Read more about Wednesday's movers in extended trading here. — Darla Mercado Stock futures open little changed Futures linked to the major U.S. averages were little changed on Wednesday night. S&P 500 futures were down 0.04%, while Nasdaq 100 futures slid 0.1%. Futures tied to the Dow Jones Industrial Average were little changed. — Darla Mercado