Finance

Global equity markets remain sensitive as Brent crude oil continuously fluctuates near the $100 per barrel mark due to ongoing geopolitical tensions in the Middle East involving Iran and shipping corridors. High energy pricing has contributed to a broader narrowing of stock market breadth and sustained high yields in the bond market. However, a slight retreat in crude futures provided some relief to stock index futures ahead of the session.

The 10-year U.S. Treasury yield remains near its highest levels since 2002, heavily influencing investor expectations for Federal Reserve monetary policy. Despite recent softer payroll figures that alleviated some immediate tightening fears, elevated borrowing and mortgage costs continue to weigh on market sentiment. Traders are closely tracking the upcoming consumer price index report to gauge whether another interest rate adjustment will happen later this year.

Delta Air Lines initiated the third-quarter corporate earnings season by reporting a financial miss and downwardly adjusting its forward outlook. The carrier's performance was severely impacted by a 62% year-over-year surge in fuel costs, despite experiencing a notable 15% increase in adjusted revenue driven by resilient consumer travel demand. Investors are evaluating whether persistent pricing power can continue to shelter corporate profitability against structural macroeconomic headwinds.