Dow futures crash 480 points: 5 things to know before Wall Street opens on Oct. 8

• Brent crude climbed roughly 4% to above $104 per barrel due to Middle East tensions, attacks on Saudi infrastructure, and Gulf of Mexico storm disruptions affecting Shell and Chevron production.
• Treasury yields stayed elevated with the 10-year above 5.3% and 30-year above 5.7%, making bonds more competitive with equities and weighing particularly on high-valuation tech stocks.
• TSMC reported strong Q3 revenue of $46.7 billion (up 50% year-over-year) driven by AI chip demand, but semiconductor stocks still declined; Amazon cut under 1,000 corporate jobs while PepsiCo lowered its full-year profit-growth forecast despite beating quarterly expectations.

Market Summary: Dow Futures Plunge on Oil Spike and Rising Yields

Key Market Movements:

US equity futures fell sharply Thursday, with Dow futures down 482 points (-0.94%), S&P 500 futures declining 0.57%, and Nasdaq 100 futures dropping 0.83%. The selloff follows a retreat from recent record highs as rising borrowing costs offset strong AI-sector earnings.

Oil Market Shock:

Brent crude surged approximately 4% to trade above $104 per barrel, while West Texas Intermediate approached $92. The spike stems from escalating Middle East tensions, including attacks on Saudi infrastructure, Iranian-related risks, and potential disruptions at the Strait of Hormuz. Gulf of Mexico storm-related production halts by Shell and Chevron added supply pressure.

Treasury Yields Remain Elevated:

The 10-year Treasury yield held above 5.3%, with the 30-year exceeding 5.7%. Federal Reserve Governor Christopher Waller indicated additional rate hikes may be necessary to control inflation, putting pressure on high-valuation technology stocks as bonds become more attractive relative to equities.

Corporate Developments:

• TSMC reported robust Q3 revenue of NT$1.48 trillion ($46.7 billion), up 50% year-over-year, driven by AI chip demand. September sales jumped 55%, though semiconductor stocks declined despite strong fundamentals.
• Amazon announced job cuts affecting under 1,000 employees in its Stores division across the US, India, and UK.
• PepsiCo beat Q3 expectations with revenue of $25.27 billion (up 5.6%) but lowered its full-year profit growth forecast due to North American weakness and higher input costs.

Market Implications:

The combination of energy supply risks and sustained high interest rates threatens to challenge equity valuations, particularly in the technology sector, despite continued strength in AI-related demand.