US stock futures showed little movement early Friday, as investors remained cautious in the face of rising Treasury yields and their potential drag on the economy.
Futures linked to the Dow Jones Industrial Average dipped marginally by 18 points, while those tied to the S&P 500 and Nasdaq 100 hovered near the flatline — a sign that traders are still weighing the broader impact of elevated long-term interest rates.
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The mood on Wall Street has been noticeably subdued this week. On Thursday, both the S&P 500 and the Dow closed with minor losses, extending their losing streak to three consecutive sessions. The Nasdaq Composite, however, managed to buck the trend with a modest 0.3 percent gain.
Much of the caution stems from concerns over the growing U.S. fiscal deficit, reignited after the House of Representatives approved President Donald Trump’s expansive tax proposal. The bill, now headed to the Senate, has sparked fresh worries about rising government debt and its long-term implications.
Bond markets responded swiftly. The yield on the 30-year Treasury note surged to 5.161 percent on Thursday, marking its highest level since October 2023. Meanwhile, the 10-year yield briefly crossed the 4.6 percent threshold. Both have edged slightly lower since then, but remain elevated.
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These bond market jitters come on the heels of Moody’s recent downgrade of the U.S. sovereign credit rating to Aa1 from Aaa — a symbolic but notable shift that reflects mounting anxiety over the government’s rising debt burden and refinancing challenges.
As things stand, the major stock indices are headed for a losing week. Through Thursday’s close, the S&P 500 is down nearly 2 percent, while the Dow has slipped 1.9 percent. The Nasdaq, relatively resilient, is still tracking a weekly decline of about 1.5 percent.
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