FX.co ★ US Futures Maintain Pullback

US equity index futures traded lower on Thursday, paring some of the prior session’s gains amid mounting signs that the Federal Reserve may keep interest rates elevated for longer. Futures on the three major indices were down roughly 0.3%.

Longer-dated Treasury yields rebounded as the market digested hawkish elements in the latest FOMC minutes, a sharp rise in crude oil prices, and a softer-than-expected reading on initial jobless claims for mid-February. The minutes showed that a majority of policymakers were worried that disinflation could take longer than usual to materialize, and a few officials indicated that further rate hikes might be needed if inflation remains stuck above the Fed’s target.

Higher yields weighed on bank stocks in pre-market trading, while mega-cap tech names gave back part of Wednesday’s gains as investors reassessed the risks around elevated capital expenditure commitments for data centers. Meanwhile, Walmart shares fell more than 2% despite the retailer topping Q4 revenue forecasts and announcing a dividend increase.