FX.co ★ US Futures Fall on Profit-Taking

US stock futures edged lower on Friday as investors locked in profits after a strong rally, while persistent Middle East tensions, mounting inflation worries, and rising expectations of a US interest rate hike weighed on sentiment. President Trump said he would no longer be patient with Iran and urged Tehran to reach an agreement with Washington, keeping geopolitical risks elevated.

Oil prices continued to climb amid heightened uncertainty in the Strait of Hormuz, stoking inflation concerns and strengthening market bets that the Federal Reserve could raise interest rates later this year. At the same time, the benchmark US 10-year Treasury yield rose above 4.5%, its highest level in a year, after fresh inflation data signaled quickening price pressures.

On Thursday, the S&P 500 and Nasdaq Composite advanced 0.77% and 0.88%, respectively, with both indexes closing at new record highs. The Dow Jones Industrial Average also gained 0.74%, reclaiming the key 50,000 level.