US stock futures edged lower in premarket trading on Wednesday as rising oil prices and bond yields sent ripple effects across markets.

Futures on the Dow Jones Industrial Average (YM=F) fell 0.1%, and S&P 500 (ES=F) edged lower by 0.2%, while contracts for the Nasdaq-100 (NQ=F) slipped 0.6%, extending losses after a losing day on Wall Street.

Stocks got off to an unsteady start in September as an escalation in the war in Iran caused Brent (BZ=F) crude oil prices to jump above $95 per barrel. On Tuesday, President Trump threatened to hit Iran "much harder" if the nation retaliates against a barrage of airstrikes launched on Tuesday.

The latest flare-up in hostilities has amplified fears of rising inflation, driving up bond yields in the process. On Tuesday, the 10-year Treasury yield (^TNX) rose to 4.79%, while the 30-year (^TYX) climbed to 5.27%, affecting a range of assets.

A trade standoff with Canada also remained in focus, with Canadian Prime Minister Mark Carney saying the US and Canada could resume trade discussions when Americans "stop throwing shade" and "start being serious" about negotiations. However, Treasury Secretary Scott Bessent downplayed the idea that the US was in a trade war with Canada.

On Wednesday, ADP's private-sector hiring data will offer clues about the health of the labor market after job openings appeared frozen, providing insights into what Friday's monthly jobs report may show.

Earnings from Broadcom (AVGO) and Snowflake (SNOW) are also on the docket on Wednesday.

Yahoo Finance's Ben Werschkul reports:

President Trump's highly touted oil deal in Venezuela will require what all sides agree is about $100 billion in capital investment over the coming years to build the infrastructure needed to get the energy out of the ground.

Yet while many aspects of the deal have been clarified, it's not clear where all that money will come from to fulfill Trump's ambitious promises in what he's calling the biggest oil deal in world history.

The funding issue has emerged as perhaps the central unanswered question about the US government's plans for this major slice of Venezuela's oil fields, which geologists estimate holds approximately 65 billion barrels of oil — a massive quantity, but only about one-fifth of Venezuela's entire reserves, estimated at 303 billion barrels.

Read more.

Dell Technologies (DELL) stock surged as much as 10% in extended trading. The maker of laptops and servers raised guidance and posted record revenue and adjusted earnings for its fiscal 2027 second quarter amid a booming AI server business.

The company said it booked a record $60.9 billion in AI server orders and exited the quarter with a record $95 billion backlog.

Dell Technologies said it also saw growth in its traditional servers, networking, and storage businesses.

The company posted record revenue of $47 billion, up 58% year over year. Earnings per share came in at $6.34, up 273% from a year ago. Adjusted earnings rose 203% to $7.04 per share.

"With AI momentum accelerating and our opportunity expanding across the portfolio, we're raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year," said Jeff Clarke, CEO of Dell Technologies, in the company's earnings release.

Read more.

Economic data: MBA mortgage applications, week ended Aug. 28 (-1% previously); ADP employment change, August (+46,000 expected, +44,000 previously); Factory orders, July (+0.6% expected, -0.3% previously); Durable goods orders, July final reading (+1.1% expected, +1.1% previously)

Earnings calendar: Broadcom (AVGO), Snowflake (SNOW), Hewlett Packard Enterprise Company (HPE), NetApp (NTAP), Five Below (FIVE), Brown-Forman Corporation (BF-A, BF-B), FuelCell Energy (FCEL)

Catch up on some top stories you might have missed overnight:

Trump ramps up pressure on squeezed refiners to ease pump prices

Congress sends funding bill to avert US shutdown to Trump

Dell stock surges on record orders for AI servers

OpenAI will limit access to new Astra model's cybersecurity features

US jobs most likely to grow or shrink in the next decade

Global bond yields jumped on Tuesday as the latest hostilities between the US and Iran reinforced inflation expectations and bets that the Federal Reserve will opt to hike interest rates in September.

The Wall Street Journal reports:

The 10-year U.S. Treasury yield rose to 4.798%, the highest since January 2025, according to LSEG data. The U.S. two-year Treasury yield rose to 4.369%, which would be its highest settlement also in 19 months, reflecting rising bets on an interest rate increase by the Federal Reserve in September.

One-year ahead U.S. inflation expectations, as measured by derivative markets, have crept up to 2.5% from less than 2% in the past couple of weeks, according to LSEG.

The 10-year Japanese government bond yield crossed 3% to hit a 30-year high. The 10-year German Bund yield reached 3.364%, unseen since 2011.

In the U.K., the 10-year gilt yield rose to 5.255%, its highest since 2008, while the 30-year gilt yield rose to levels unseen since 1998.

"Global bonds are facing a perfect storm of rising inflation fears, driven by higher energy prices, which are in turn raising rate hike expectations," Leon Ferdinand Bost, analyst at Metzler said. "At the same time, fiscal concerns are back at the forefront and together with heavy supply are weighing on the long end," he said.

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