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US stock futures extended declines on Thursday, while Treasury yields continued to test multi-week highs, as investors braced for a key series of economic and inflation data amid the worst week for global stocks in more than a month.
A sharp rise in Treasury yields, linked to renewed inflation risks and a wave of new supply, sent stocks lower on Wednesday, with the S&P 500 ending 0.74% in the red and the Dow Jones extending a week-long decline to just over 1,400 points.
The Treasury Department’s third coupon auction this week, a $44 billion sale of 7-year bonds, sparked weak foreign and domestic demand as paper yields rose, pushing 10-year bonds to 4.594%, the highest level in more than a month.
Related: Bond markets sound alarm on inflation, stocks test rally
Bond markets will also face a huge wave of new supply next month, with $340 billion in new debt issuance from the US, Europe and the UK, according to BNP Paribas data.
That added to the pressure on stocks, which traded without the benefit of top-tier corporate earnings headlines as investors eyed today’s release of revised first-quarter GDP data and tomorrow’s reading of the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index.
On Wall Street, futures tied to the S&P 500, still up 4.6% for the month, were priced 17 points lower ahead of revised GDP data and weekly jobless claims numbers at 8:30 a.m. US Eastern Time.
Futures tied to the Dow Jones point to a 330-point decline, though much of that is tied to a 16% decline in Salesforce. (Customer relationship management) , which issued weak sales forecasts after a mixed first-quarter earnings report. Meanwhile, the Nasdaq fell 40 points.
Other stocks moving include PayPal (PYPL) , which jumped 2.4% after upgrading Mizuho’s online payments group; and the artificial intelligence software suite UiPath (road) which fell 30% after a disappointing first-quarter earnings update.
Foot locker (Florida) Shares rose 13.7% after the sneaker retailer reported stronger-than-expected first-quarter earnings and a significant year-over-year decline in total inventories.
Cole (Kansas) Elsewhere, shares fell more than 21% to $21.42 after the department store chain posted a surprise loss in the first quarter amid what CEO Tom Kingsbury called “ongoing uncertainty in the consumer environment.”
Costco (it costs) Shares rose 0.3% in premarket trading ahead of the wholesale discount retailer’s fiscal third-quarter report after the close of trading.
RELATED: Fed rate cuts face major reset due to renewed inflation risks
In foreign markets, the European Stoxx 600 index rose by 0.3% in Frankfurt, while the British FTSE 100 index rose by 0.23% in London amid hopes of lower interest rates from the central banks of the two countries.
More from Wall Street analysts:
- Analyst reveals new price target for Nike ahead of sport’s big summer
- Analysts comment on shares of Google subsidiary Alphabet after cloud event
- Analysts are renewing their Disney share price target after a proxy battle
Overnight in Asia, a sell-off on Wall Street sent the Nikkei 225 down 1.3%, the third straight day of losses and the lowest closing level since April 26.
Meanwhile, the region-wide MSCI ex-Japan index fell 1.25% at the end of trading.
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