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Rate-cut hopes fade as US Treasury buybacks face Iran oil risks

S&P 500 futures were down 0.17% near 7,680 and Nasdaq 100 futures fell 0.65% to about 29,200 as markets weigh longer-dated debt buyback plans against oil-driven inflation concerns.

Reported · Written up by our desk · Central Banks

FXStreet reports US stock futures were subdued in European hours on Monday, with S&P 500 futures down 0.17% near 7,680 and Nasdaq 100 futures off 0.65% around 29,200. Dow Jones futures were also steady near 53,350 as investors weighed a new US Treasury approach to support longer-dated markets.

The US Treasury said it plans to double its buybacks of longer-dated government debt to counter surging bond yields. US Treasury Secretary Scott Bessent suggested the buybacks could exceed $4 billion, framing the move as evidence that higher yields do not reflect weaker economic fundamentals.

Sentiment, however, remained pressured by concerns that the prolonged US-Iran conflict will keep oil prices elevated and limit the scope for interest rate cuts. Bessent also outlined plans for unusually tough sanctions targeting Iran and its trade partners, with the report noting disruptions to Iranian oil shipments and drying up offers to Chinese buyers amid a US naval blockade.

Looking ahead, FXStreet said investors are watching the July PCE inflation report and a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. The report added that traders will also monitor upcoming earnings from Nvidia and Marvell Technology, after recent market weakness that included declines in major US indexes and a near two-decade high in the 30-year Treasury yield.

Latest closeS&P 500 7,785.76 ▼0.2%|Nasdaq Comp. 26,729.16 ▼0.3%|Dow Jones 53,732.41 ▼0.2%

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