Stock Futures Drop as Higher Yields and Oil Prices Spook Markets

Stocks looked set to fall on Friday as investors fretted about soaring Treasury yields and President Donald Trump’s summit with China's leader Xi Jinping concluded without any meaningful breakthrough on trade. “For some time, analysts have been puzzled by equity markets’ resilience in the face of rising bond yields and clear inflationary pressures,” said Kathleen Brooks, research director at the foreign-exchange brokerage XTB. “Today we may see the pressure of rising bond yields start to weigh on equities, and futures prices suggest that U.S. indices will pull back from record highs later today and could close the week on a dampener.”