Traders on the floor of the New York Stock Exchange on October 12, 2023.
Source: New York Stock Exchange
Stock futures fell Thursday night as traders focused on a recent rise in the 10-year Treasury yield.
Futures linked to Dow Jones Industrial Average they were down 63 points, or 0.2%. S&P 500 Futures fell 0.3%, and Nasdaq 100 Futures fell approximately 0.4%.
Benchmark performance 10-year Treasury crossed 5% for the first time in 16 years. The 10-year yield hit 5.001% around 5 p.m. ET, the first time it has traded above that level since July 20, 2007, when it yielded as high as 5.029%.
In after-hours operations, shares of Solar Edge fell 21% as the company cut its revenue guidance for the third quarter. Knight-Swift Transport gained 15% after beating estimates in the third quarter on both top and bottom lines.
The action follows a volatile day for stocks. The action of 30 Dow lost 250.91 points, or 0.75%, while the S&P 500 lost 0.85%. He Nasdaq Composite fell almost 1%.
Stocks shook on Thursday after Federal Reserve Chairman Jerome Powell spoke in new york. He said inflation remains too high and lower economic growth will likely be needed to bring it down. Powell also said he doesn't think rates are too high now.
"While the road is likely to be bumpy and take some time, my colleagues and I are united in our commitment to sustainably reduce inflation to 2 percent," he added.
Although Powell did not commit to a path forward for rates during his speech, the market seems to think the central bank will skip a hike in November.
Fed funds futures prices reflect a 92% probability that the central bank will keep rates the same at the conclusion of its November meeting, according to the CME FedWatch Tool.
The major averages are on track for losses during the week. The S&P 500 is down 1.2% through Thursday's close, while the Nasdaq is down 1.7%. The Dow Jones is down almost 0.8%.
On the earnings front, investors will be looking for results of Comerica, Financial regions and American Express. oil services company SLB He is also on deck to report.
