Dow futures experienced an uptick early Thursday as market participants anticipated the initial of two inflation reports scheduled for release this week. Futures associated with the Dow Jones Industrial Average increased by 89 points, reflecting a rise of 0.17%. S&P 500 futures increased by 0.1%, while Nasdaq-100 futures declined by 0.17%. The action follows a decline in the major averages for a third consecutive day. The Dow experienced a decline of slightly more than 400 points, representing a decrease of 0.8%, whereas the S&P 500 saw a reduction of 0.5%. The Nasdaq Composite declined 0.6%. Elevated Treasury yields exerted downward pressure on the U.S. stock market following the Treasury Department’s announcement of a buyback of up to $6 billion in longer-term debt, a figure that is three times the standard amount.

Less than a month ago, the Treasury announced that it would more than double the size of its $2 billion government debt repurchases. Following the move, the yield on the 10-year Treasury note climbed to a session high of 4.857%, marking its highest level since November 2023. “The size of this program remains far short of what would be necessary to materially move yields at the long end,” Tobin Marcus said in a note. “It’s been clear since the expanded bond buybacks were first announced last month that they were intended to send a signal to markets, but in our view, the nature of that signal was murky.” Increasing oil prices, coupled with intensifying tensions between the U.S. and Iran, exerted downward pressure on stock markets. International Brent crude futures advanced 3.4% to close at $101.21 a barrel, while U.S. West Texas Intermediate crude futures advanced 3.3% to end at $96.05. Both recorded the highest settlement prices since May. The recent surge in oil prices coincides with traders focusing on two inflation reports scheduled for release this week.

August’s producer price index, which serves as an indicator of wholesale inflation, is scheduled for release on Thursday morning. Economists surveyed by Dow Jones anticipate a monthly increase of 0.3%, alongside a year-over-year rise of 5.3%. The closely monitored consumer price index is set to be released on Friday, with expectations indicating a 0.4% rise for August and a year-over-year increase of 3.4%. Both figures contribute to the Federal Reserve’s main inflation measure, the personal consumption expenditures price index, which is scheduled for release following the Fed’s interest rate decision on September 16. Additional economic reports of significance encompass weekly initial jobless claims and August existing home sales. Asia-Pacific markets concluded the trading session on Thursday with a varied performance. Japan’s Nikkei 225 experienced a modest increase of 0.2%, whereas South Korea’s Kospi encountered a slight decline of 0.25%. Hong Kong’s Hang Seng index experienced a decline of 1.23% during its final hour of trading, whereas mainland China’s CSI 300 recorded a loss of 0.53%. Australia’s S&P/ASX 200 experienced a decline exceeding 1%.

In Europe, equities experienced a general decline, as evidenced by the regional Stoxx 600 index, which fell by 0.1% in early trading in anticipation of the European Central Bank’s forthcoming monetary policy update. The ECB is anticipated to increase its key interest rate by 25 basis points, as inflation continues to exceed the target, driven by the energy shock stemming from the Iran war. “We think global equity markets can continue to rise despite higher energy costs,” UBS strategists said in a note on Thursday morning. “If the impact of higher energy worsens, we would like both U.S. and European health care sectors for their defensive characteristics alongside structural growth opportunities. In Europe, we also favor industrials, banks, and IT. In Asia, Taiwan could face a drag from higher energy prices, but we think its outsized exposure to the structural AI theme should cushion the impact.”