U.S. equity futures bumped higher in pre-market trading, while the dollar slipped lower and market volatility gauges steadied, as investors looked for relief from the relentless rise in Treasury bond yields while tracking key jobless data and a speech from Federal Reserve Chairman Jerome Powell.

Stocks managed to grind out modest gains Wednesday, with the S&P 500 rising 0.02% on the session, even as Treasury yields hit fresh 2007 highs and oil prices rose to the highest levels since late last summer.

Government shutdown concerns were also front-and-center, and remain so heading into the Thursday session, after House Speaker Kevin McCarthy said a bi-partisan Senate spending bill, aimed at keeping the federal government funded until mid-November, would be unlikely to find support from Republican lawmakers. 

Treasury yields, meanwhile, continue to march higher, with 10-year notes pegged at 4.63% heading into the New York session, a 60 basis point increase since the start of the month, and 2-year notes trading at 5.116%.

The U.S. dollar index, which hit a fresh 10-month high against its global peers yesterday, was marked 0.31% lower in overnight dealing at 106.341. 

That pullback failed to lift global stocks, however, with the MSCI World index on pace for its 10th consecutive decline, the longest losing streak in two years, and Asia shares slumping to a 10 month low.

China shares were also active, but managed to eek out modest gains on the final trading session before the annual Golden Week of holidays closes markets until next Friday.

In Tokyo, the Nikkei 225 fell 1.54% as investors worried that the yen neared the 150 mark against the U.S. dollar, a level that is likely to trigger buying intervention from the Bank of Japan. 

Global oil prices were also easing, following the first $95 print for WTI crude in more than a year yesterday following Energy Department showing domestic crude stockpiles fell by 2.2 million barrels last week, with inventories at the key distribution hub in Cushing, Oklahoma, falling to the lowest levels of the year

WTI crude futures for November delivery were last marked 25 cents lower at $93.43 per barrel, while Brent contracts for the same month slipped 46 cents to $96.09 per barrel.

On Wall Street, stocks are set for modest opening bell gains ahead of a key reading for weekly jobless claims at 8:30 am Eastern time, data that will fall alongside the final reading for second quarter GDP and further details on wage and inflation pressures over the three months ending in June.

Powell, meanwhile, will host a virtual ‘Town Hall’ meeting with teachers from around the country starting at 4:00 pm Eastern time, although it is unclear whether he will make any remarks directly related to the Fed’s current policies.

Futures contracts tied to the S&P 500 are priced for a modest 2 point opening bell gain while those linked to the Dow are indicating a 20 point bump. The Nasdaq is called 11 point lower. 

The CBOE group’s VIX, the market’s key volatility gauge, was marked 4% lower at 18.19 points. 

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