Bond Selloff Pauses, Stocks Edge Higher as Market Sentiment Cautiously Improves — Update

By Joe Stonor

The selloff in global government bonds took a breather and U.S. stock futures rose as market sentiment steadied at the end of a turbulent week.

Concern around high energy prices and increasing conviction that the Federal Reserve will deliver multiple rate hikes this year are keeping Treasury yields near the multiyear highs hit Thursday. Ten-year Treasury yields traded at 5.179%, holding at levels not seen since July 2007.

Oil pulled back from intraday highs of above $108 a barrel in the last session, but prices remained stubbornly above $100. Reports that the U.S. and Iran discussed a phased deal to reopen the Strait of Hormuz lifted sentiment, but investors are jaded after multiple false dawns in talks. Meanwhile, an attempted missile attack by Houthi rebels Thursday raised the risk of disruptions to Saudi energy infrastructure and supply routes in the region. Brent crude oil for November delivery slipped 1.7% to around $104.70 a barrel.

U.S. stock futures were in the green, with Nasdaq contracts up 0.7%. Futures for the Dow Jones Industrial Average and the S&P 500 both edged up by around 0.35%. Asian equity markets were mixed, with Hong Kong's Hang Seng index down 1%, while Japan's Nikkei added 1.3%. Markets in South Korea, Taiwan and mainland China were closed for holidays. European indexes opened higher, boosted by banks and artificial intelligence-related stocks. The continent-wide Stoxx 600 rose 0.6%.

President Trump and Chinese leader Xi's summit on Thursday offered little in market-moving substance. The yen strengthened against the dollar after Japan's finance minister said President Trump expressed concern about the level of the Japanese currency. Bitcoin climbed back above $84,000, while gold contracts held above $4,300 a troy ounce.

For the day ahead, the University of Michigan's final consumer sentiment index for September will be released. Investors will watch for a fresh round of speeches from Fed policymakers.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

September 25, 2026 08:29 ET (12:29 GMT)