Stock futures slip as elevated Treasury yields weigh on sentiment: Live updates

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Traders work on the floor of the New York Stock Exchange on March 13, 2025.

NYSE

Stock futures slipped early Friday as investors continue to evaluate the effect of higher U.S. Treasury yields on the economy.

Futures tied to the Dow Jones Industrial Average ticked lower 15 points, or 0.04%. Nasdaq 100 futures dipped 0.09% while S&P 500 futures traded flat.

In regular trading, the S&P 500 closed just below the flatline, as did the 30-stock Dow. Both posted their third consecutive losing day. The Nasdaq Composite was the outlier, rising about 0.3%.

Early Thursday, members of the House of Representatives cleared President Donald Trump's sweeping tax bill. It now goes to the Senate. Worries about the cost of the measure – and its impact on the nation's debt and deficit – sent long-term Treasury yields higher.

The 30-year Treasury bond yield touched a high of 5.161%, its highest level since October 2023. The rate on the 10-year Treasury note at one point breached 4.6%. Rates on both Treasurys ended the session off their highs.

"Even if the inability to reduce the deficit in the U.S. doesn't lead to default, a large deficit still implies greater bond supply, and perhaps eventual inflation as the debt is monetized to avoid default," said Thierry Wizman, global rates and currencies strategist at Macquarie. "Either way, it makes nominal fixed-income instruments less attractive as long-term investments."

The revived fears over the economy follow Moody's downgrade of the United States' credit rating nearly a week ago. The rating agency cut the nation's sovereign credit rating down one notch to Aa1 from Aaa, pointing to the government's ballooning deficit and the cost of rolling over its existing debt.

The major averages are heading for losses on the week, with the S&P 500 down nearly 2% through Thursday's close. The Dow is on pace for a decline of about 1.9%, while the Nasdaq is tracking for 1.5% slide week to date.

On the economic front, investors will be watching for building permits and new home sales data out Friday.

Investors are also heading into a holiday weekend that will see the stock market closed for Memorial Day on Monday.

Supreme Court suggests Fed board members are protected from being fired by a president

The Supreme Court suggested on Thursday that Federal Reserve board members have special protection from being fired by a president.

This ruling permits President Donald Trump to fire two members who are on the boards of federal agencies, but it also suggests that an attempt by a president to terminate a Federal Reserve board member would face pushback from the Supreme Court.

"The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States," the majority ruling said.

–Darla Mercado, Dan Mangan

Stocks making the biggest moves after hours

Check out some of the companies making headlines in extended trading.

Ross Stores — Shares pulled back more than 11%. Ross withdrew its earlier full-year guidance. The off-price retailer said that it expects second-quarter earnings to range from $1.40 to $1.55 per share, while analysts polled by LSEG sought $1.65 per share. Ross also said that it expects pressure on its profitability if tariffs remain at elevated levels.

AutoDesk — Shares gained more than 2% after the software company issued a higher-than-expected second-quarter outlook. AutoDesk forecast adjusted earnings in the current quarter in the range of $2.44 to $2.48 per share on revenue of $1.72 billion to $1.73 billion. Analysts polled by LSEG were looking for $2.34 cents per share and revenue of $1.70 billion.

Intuit — Shares of the tax software company gained about 8% after Intuit forecast a rosy outlook for the full year. The firm forecast adjusted earnings in the range of $20.07 to $20.12 per share, up from its earlier guidance of $19.16 to $19.36 per share. FactSet consensus estimates sought $19.40 per share. Fiscal third-quarter results also topped estimates.

Read the full list here.

— Brian Evans