Investing.com - U.S. stock futures oscillated around the flatline on Thursday, with equities on track to slump to their worst month so far this year as investors fretted over the prospect of interest rates remaining higher for a longer period of time.
At 06:34 ET (10:34 GMT), S&P 500 futures added 4 points or 0.1% and Dow futures gained 18 points or 0.1%, while Nasdaq 100 futures dipped by 19 points or 0.1%.
In a mixed session on Wall Street on Wednesday, the benchmark S&P 500 inched marginally higher and the tech-heavy Nasdaq Composite climbed by 0.2%, while 30-stock Dow Jones Industrial Average was the laggard, dipping by 0.2%. With mere days left in both September and the latest quarter, all of the main indices are on track to post monthly declines, while the S&P 500 in particular is on course for its first three-month loss in a year.
Weighing on sentiment has been a jump in the U.S. 10-year Treasury yield, which touched a level not seen since 2007 in the prior session. Yields typically rise as prices decrease.
While the S&P 500 has still risen by 11% so far this year, much of these gains have been linked to a surge in technology stocks earlier in the year that was fueled by enthusiasm over artificial intelligence. While AI remains a hot topic, a hawkish Federal Reserve policy update last week has driven many traders to predict that borrowing costs will stay elevated for longer than previously anticipated.
Micron expands loss outlook
Shares in Micron (NASDAQ:MU) fell in premarket trading after the U.S. chipmaker guided for a loss in its fiscal first quarter that was wider than analysts' expectations.
The Idaho-based company said it now plans to report an adjusted loss per share of $1.07 during the period, steeper than estimates of $0.95, according to data cited by Reuters.
However, Micron's forecast of $4.40 billion in revenue -- plus or minus $200 million -- in its current quarter topped projections of $4.20B.
In an interview with Reuters, Chief Business Officer Sumit Sadana said that Micron has essentially placed a bet on turning a profit from its higher performing chips next year, adding that some of these samples have "blow[n] away" customers.
Investors are hoping that soaring AI demand will boost sales of Micron's high-bandwidth memory chips and help the group weather weakness in other end markets.
Oil prices edge lower after surging on crude stockpiles drop
Oil prices inched down on Thursday, but remained near their highest in more than a year after a fall in U.S. crude stocks added to worries over a tightness in global supplies.
Crude prices have jumped more than 30% over the past three months in response to production squeezes by Saudi Arabia and Russia, though the rally hit a bump last week on economic and demand concerns.
But data on Wednesday from the U.S. government showing crude stockpiles falling by more than anticipated reinvigorated the run-up in oil.
At 06:34 ET, New York-traded West Texas Intermediate, or WTI, crude futures decreased by 0.4% to $93.27 a barrel, while London-traded Brent futures dipped by 0.6% to $93.84 per barrel.
(Oliver Gray contributed to this item.)