Investors weigh $4 billion Treasury debt buybacks against Middle East tensions and inflation fears, pressuring equities.
US stock futures edged lower in early trading as the Treasury Department announced plans to double buybacks of longer-dated debt, targeting over $4 billion. The move aims to stabilize surging bond yields but failed to ease investor concerns over persistent inflation risks tied to geopolitical tensions.
S&P 500 futures fell 0.17% to near 7,680, while Nasdaq 100 futures dropped 0.65% to around 29,200. Last week, the Dow Jones declined 0.8%, reflecting broader market caution amid escalating US-Iran conflict and energy supply disruptions.
The Treasury’s strategy includes tougher sanctions on Iran, threatening global oil flows and reinforcing inflationary pressures. Markets remain wary of delayed interest rate cuts as oil prices stay elevated.