U.S. equities are pointing higher Friday morning as renewed enthusiasm around AI infrastructure offsets another rise in Treasury yields and crude oil. At 5:15 a.m. ET, Dow futures were up 0.31%, S&P 500 futures were up 0.31% and Nasdaq 100 futures were up 0.61%, with semiconductor shares leading the early advance. Thursday’s cash session was much less constructive beneath the surface: the S&P 500 slipped 0.02%, the Dow fell 0.31%, the Nasdaq edged up 0.01% and the Russell 2000 declined 0.11% as rising oil prices and long-term yields continued to restrain broader risk appetite.
Treasury yields extended their rise, with the 2-year up 4 basis points to 4.93%, the 10-year up 10 basis points to 5.20% and the 30-year up 9 basis points to 5.48%. The disproportionate move at the long end steepened the curve and keeps the equity valuation backdrop restrictive, particularly for rate-sensitive Utilities, Real Estate and higher-duration growth stocks. Fed-funds futures now imply roughly a 71% probability of at least another 25-basis-point rate increase in October, up materially from earlier in the week. Several Federal Reserve officials, including New York Fed President John Williams, Kansas City Fed President Jeffrey Schmid and Cleveland Fed President Beth Hammack, are scheduled to speak today.
The dollar strengthened alongside yields. The DXY rose 0.17 to 101.26, while the euro declined 0.09% to $1.1376 and sterling fell 0.15% to $1.3219. The dollar gained 0.37% to ¥158.90, while EUR/JPY rose 0.29% to ¥180.78. Dollar strength remains another tightening influence on financial conditions and a potential headwind for U.S. multinationals with significant overseas revenue exposure.
Energy remains the other major macro pressure point. November WTI crude rose $3.06, or 3.32%, to $95.22, extending its rebound as markets continue to assess Middle East supply risks and negotiations over a potential reopening of the Strait of Hormuz. Higher energy prices are complicating the inflation outlook even as diplomatic discussions continue. December gold slipped $11.60, or 0.27%, to $4,306.80, with higher Treasury yields and a firmer dollar offsetting geopolitical demand.
The U.S.-China summit produced an extension of the existing trade truce by another two months, providing additional time for negotiations but stopping short of a broader trade or technology agreement. The talks covered trade, technology and artificial intelligence, leaving major structural disagreements unresolved but reducing the immediate risk that the existing tariff arrangement expires in November.
Today’s economic calendar centers on August durable-goods orders at 8:30 a.m. ET and the final September University of Michigan Consumer Sentiment survey at 10:00 a.m. The preliminary Michigan reading fell to 47.8 from 51.7 in August, while one-year inflation expectations rose to 4.6%, making any revision to inflation expectations particularly relevant with oil and Treasury yields already moving higher.
S&P 500 Sector Highlights
Sector leadership remained narrow Thursday. Communication Services +1.92% led by a wide margin, followed by Health Care +0.65%, Energy +0.43% and Financials +0.01%. The remaining seven sectors declined, led by Utilities -1.02%, Materials -1.01%, Consumer Staples -0.97%, Industrials -0.71%, Real Estate -0.37%, Technology -0.32% and Consumer Discretionary -0.23%. Market breadth remained negative, with declining issues outnumbering advancers by 1.92:1 on the NYSE and 1.44:1 on the Nasdaq. Breadth improved materially from Wednesday’s more than 3-to-1 negative readings but continues to show that headline index resilience is being supported by a relatively narrow group of large-cap stocks.
Information Technology
- Akamai Technologies (AKAM) is up roughly 21% premarket after announcing a seven-year cloud infrastructure agreement with Anthropic representing approximately $11.6 billion of contractual commitments. The agreement could ultimately expand by another $9 billion, while Akamai expects roughly $5.5 billion of related capital expenditures. The announcement materially expands Akamai’s exposure to AI-compute infrastructure and is one of the morning’s largest large-cap moves.
- Advanced Micro Devices (AMD), Marvell Technology (MRVL), Intel (INTC) and Cerebras are each up roughly 2% premarket as AI infrastructure enthusiasm returns. The semiconductor group continues to attract capital despite the 10-year Treasury yield trading above 5%, illustrating the degree to which AI earnings expectations are currently offsetting the valuation pressure from higher discount rates.
- Nvidia (NVDA) is modestly higher premarket as the broader AI complex rebounds. The stock remains a principal driver of index-level growth exposure, while today’s Akamai-Anthropic agreement provides another indication that AI spending is broadening from GPUs into networking, CPU compute and distributed cloud infrastructure.
Communication Services
- Meta Platforms (META) is roughly flat premarket after helping Communication Services outperform sharply Thursday. At its Connect 2026 event, Meta announced that its Muse personal AI agent is being integrated into its AI glasses and introduced a broader lineup of AI and VR devices. The shares are on pace for a fifth consecutive weekly gain following strong early adoption of Muse.
- People Inc. (PPLI) is up roughly 9% premarket following a report that MGM Resorts (MGM) is considering an acquisition proposal. The discussions follow People’s withdrawal this week of its own proposal to acquire MGM, creating an unusual potential reversal of buyer and target. Reuters said it could not independently verify the reported MGM discussions.
Consumer Staples
- Costco Wholesale (COST) is little changed following fiscal fourth-quarter results. Quarterly net sales increased 11.2% to $93.9 billion, while adjusted comparable sales excluding gasoline and FX rose 6.7% and digitally enabled sales increased 19.8%. Diluted EPS was $6.75, including a $0.15 benefit from tariff refunds. The muted stock reaction reflects another strong operating quarter against an already demanding valuation.
Health Care
- Prime Medicine (PRME) gained roughly 13% after hours after the FDA cleared its investigational-new-drug application for PM647, its in-vivo Prime Editing therapy for Alpha-1 Antitrypsin Deficiency. The clearance allows the company to begin U.S. clinical studies, with initial clinical data expected in 2027.
Consumer Discretionary
- Tesla (TSLA) is modestly higher premarket alongside the broader growth-stock rebound. Consumer Discretionary nevertheless remains vulnerable to the sharp rise in long-term borrowing costs, with the 10-year yield now at 5.20% and auto-financing affordability an increasingly important macro constraint.
- MGM Resorts (MGM) remains in focus following reports that it is considering a potential bid for People Inc. The development comes just one day after People withdrew its own acquisition proposal for MGM, keeping event-driven volatility elevated in both stocks.
Financials
- JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) remain sensitive to the changing shape of the Treasury curve. Thursday’s move pushed the 2-year/10-year spread wider as long rates rose faster than short rates, a more constructive configuration for bank net-interest margins than the curve flattening seen earlier in the week, although higher absolute borrowing costs remain a risk to credit demand and asset quality.
Energy
- Exxon Mobil (XOM), Chevron (CVX) and ConocoPhillips (COP) remain supported by the renewed crude rally, with WTI up another 3.32% to $95.22. Energy was one of only four S&P 500 sectors to advance Thursday and remains one of the few areas receiving a direct earnings tailwind from the same oil-price move that is pressuring rates and valuations elsewhere in the market.
Utilities and Real Estate
- Rate-sensitive Utilities and Real Estate remain under pressure as the 10-year Treasury yield reaches 5.20% and the 30-year rises to 5.48%. Thursday’s sector losses of 1.02% for Utilities and 0.37% for Real Estate continue the inverse relationship between long-duration defensive equities and the renewed rise in long-term Treasury yields.
