S&P futures experienced a modest increase on Friday, as Wall Street prepares to conclude a tumultuous week of trading, characterised by a surge in Treasury yields that reverberated across financial markets. S&P 500 futures increased by 0.3%, while Nasdaq-100 futures rose by 0.5%. Futures associated with the Dow Jones Industrial Average increased by 121 points, representing a rise of 0.2%. The Dow is on track for its fourth consecutive week of losses, having declined by 0.6% as of Thursday’s close. The S&P 500 is poised for a 0.7% increase, whereas the Nasdaq has risen by 1.6% thus far this week.

The drama continued in the bond market, where the 10-year Treasury yield climbed to 5.225% late Thursday, marking the highest level since 2007, while the 30-year yield reached 5.502%. This week’s rise in yields was driven by hawkish remarks from Federal Reserve Governor Michael Barr, ongoing elevated energy prices stemming from the Iran conflict, and a robust purchasing managers’ report. Fed funds futures trading indicates a probability of approximately 68% for a rate hike in October, as per the CME FedWatch tool.

The 30-year fixed rate mortgage, which tracks the 10-year note, rose to 7.45%, the highest level since 2024, as borrowing costs for consumers appeared set to rise in anticipation of the midterm elections. “Even before the moves of the past few days, the declines in credit card [annual percentage rates] and auto loan rates that occurred from mid- 2024 through the start of 2026 had stalled, and mortgage rates reaccelerated,” Heather Berger wrote in a note to clients.

“We expect these pressures to weigh on spending, largely through goods, which is contributing to the 40 [basis point] deceleration in real consumption growth we expect next year,” she added. As Friday approaches, market participants will focus on the University of Michigan consumer sentiment report alongside the durable goods data.