Stocks May See Initial Strength On Lower Crude Oil Prices, Treasury Yields

U.S. stock index futures pointed to a sharply higher open Thursday after the prior session’s sell-off left major averages near lows. The article links the potential bounce to lower crude oil prices and reduced Treasury yields, as traders sought bargains. U.S. crude oil futures fell about 2.5% and dropped below $100 a barrel, after dropping more than 3% Wednesday amid optimism over steps Saudi Arabia is taking to avoid supply disruptions following the closure of its key East-West pipeline. Treasury yields also moved down, with the 10-year note easing after ending the prior session roughly flat. The sell-off followed the Federal Reserve’s widely expected first rate increase since July 2023—raising the federal funds target range by 25 basis points to 3.75%–4%.