FX.co ★ US Futures Fall Near YTD Lows

US equity futures slipped on Thursday, hovering near their lowest levels of the year as rising energy prices intensified stagflation fears for the global economy. Futures tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 were all down about 0.3%.

The International Energy Agency’s move to release 400 million barrels of oil from strategic reserves failed to cool the latest rally in crude and refined-product prices. Escalating strikes among Iran, Israel, and GCC members have further disrupted energy flows from the Persian Gulf, reinforcing concerns over supply constraints.

US Treasury yields continued their climb across the curve, adding pressure to credit-sensitive companies. Financial stocks faced renewed scrutiny after Morgan Stanley and Cliffwater became the latest firms to cap withdrawals from private credit funds, heightening worries about the quality of underlying loans. Shares of Morgan Stanley, Bank of America, and JPMorgan each fell more than 1% in premarket trading.

Elsewhere, Adobe traded just below the flatline ahead of its earnings release.