Futures inch lower, Treasury yields climb, McCarthy ousted - what's moving markets

investing.com:

Investing.com -- U.S. stock futures edged broadly lower on Wednesday following a day of losses on Wall Street that dragged the Dow into negative territory for the year. U.S. 10-year Treasury yields, meanwhile, continue to climb, adding to a recent surge that has challenged equities and hit a range of global currencies. Elsewhere, Kevin McCarthy is ousted as House Speaker, leaving the lower chamber of the U.S. Congress leaderless with a November government funding deadline looming.

1. Futures point mostly lower 

U.S. stock futures were broadly lower on Wednesday, paring back some early declines, as investors eyed a surge in Treasury yields to their highest levels since 2007.

At 05:03 ET (09:03 GMT), the Dow futures contract edged down by 16 points or 0.1%, S&P 500 futures shed 7 points or 0.2%, and Nasdaq 100 futures lost 40 points or 0.3%.

All of the main indices on Wall Street slumped by more than 1% on Tuesday after stronger-than-anticipated job openings data sent U.S. bond yields soaring, weighing on equity valuations (more below). Yields typically move inversely to prices.

The 30-stock Dow Jones Industrial Average posted its worst day since March and the benchmark S&P 500 touched its lowest mark since June. The biggest daily decrease came in the tech-heavy Nasdaq Composite, which fell by 1.9%.

Following the losses, the Dow is now in negative territory this year. However, the S&P 500 and Nasdaq are still up by 10% and 24%, respectively, in 2023, thanks in part to an artificial intelligence-powered surge in tech stocks earlier in the year.

2. U.S. bond market turmoil's global impact

The recent spike in U.S. Treasury yields took its toll on global bond markets on Wednesday, as traders came around to the idea that