Stocks looked set to rebound on Wednesday, although investors remained on edge about rising borrowing costs as long-dated bonds extended their recent selloff.
Futures tracking the Dow were up 4 points, effectively trading flat. S&P 500 futures climbed 0.4%, and contracts tied to the tech-heavy Nasdaq 100 rose 0.6%.
The three blue-chip gauges had all started September–historically the worst month of the year for stocks–in the red, as Wall Street returned from the Labor Day weekend in a risk-off mood. Investors are trying to make sense of the Trump administration’s attempt to fire Federal Reserve Gov. Lisa Cook, as well as the legal battle the White House is facing to impose tariffs.
Global bond markets were also feeling jittery amid fears about a potential flare-up in inflation and governments’ ballooning deficits. The yield on the benchmark 10-year U.S. Treasury note climbed 4 basis points to 4.30% on Wednesday, and 30-year bond yields rose 4 basis points to just under 5%.
Monthly Job Openings and Labor Turnover data, due at 10 a.m. Eastern, could also move the market on Wednesday, given they come two days before the August nonfarm payrolls report.
The dollar climbed 0.1% against a weighted basket of its peers. Gold futures rose 0.3% to $3,601 an ounce, extending their recent record-breaking run.