Stock futures were down on Thursday as investors feared more

interest-rate hikes by the Federal Reserve after economic data came in unexpectedly strong while focus remained on the run-up in bond yields.

The Fed is likely to raise interest rates twice more this year before an extended pause in 2027, PGIM said. Abu Dhabi Bank and Goldman Sachs Asset Management, however, don't foresee a raise.

Meanwhile, oil prices rose back above $105 as the U.S.-Iran talks showed little sign of progress, while Treasury yields edged higher, hovering close to multiyear highs, on better-than-expected purchasing managers' data for September. For the day ahead, Chinese leader Xi Jinping is making his first visit in a decade to the White House to meet with Trump. While investors will be watching for information on a number of topics, the elephant in the room will be the country's continuing support for Iran.

Several Fed policymakers will speak Thursday, while U.S. data releases include new home sales for August.

Stocks to Watch

Everpure guided for revenue growth to increase in fiscal year 2028. Shares advanced 6%.

MGM Resorts International shares fell after The Wall Street Journal reported investor Barry Diller had withdrawn his bid to acquire it. The stock slid 8% in after-hours trading Wednesday.

NeoVolta logged a drop in sales and a wider loss in the latest quarter, citing federal tax law changes. The stock tumbled 24%.

Stitch Fix said it expected the new fiscal year to bring more challenges and lower sales in the first quarter. Shares slid 18% after the bell.

Watch For:

U.S. Weekly Jobless Claims; U.S. New Residential Sales for August; Economic Club of Washington, D.C., event with Federal Reserve Bank of Richmond President Thomas Barkin

Today's Top Headlines/Must Reads:

- In the Age of AI, Cash Is Still King

- Tech Industry Calls on Trump Administration to Withdraw New H-1B Visa Fee

- Trump-Xi Summit: Here's the Current State of the AI Battle

MARKET WRAPS Forex:

The dollar traded flat but remained firm after reaching an eight-week high against a basket of currencies on Wednesday, driven by the prospect of further U.S. interest-rate rises.

The Swiss franc fell after the Swiss National Bank kept interest rates at 0%, as expected.

The Swedish krona rose after the Riksbank held interest rates at 1.75%.

Bonds:

Treasury yields edged higher.

"Rates are once again at the forefront of investor concerns, as long-term Treasury yields consolidate around or above the 5% threshold-a level that carries significant psychological weight for the markets," Tikehau Capital said.

Energy:

In midmorning European trading, Brent gained 2.3%, while WTI was up 1.8%.

Metals:

Gold prices were broadly muted, hovering around $4,300 a troy ounce as expectations that the Federal Reserve could raise interest rates further weigh on the nonyielding asset.

TODAY'S TOP HEADLINES

National Stock Exchange of India Rises in Trading Debut

Shares of the National Stock Exchange of India rose Thursday in their long-awaited debut.

NSE, which raised $2.36 billion in the country's second-largest initial public offering, first filed to go public in 2016, but faced delays because of regulatory disputes and legal proceedings.

Schneider Electric to Launch Bid for Shelly Group in $1.4 Billion Deal

Schneider Electric plans to launch a takeover bid for smart-device maker Shelly Group that values the company at around 1.2 billion euros ($1.37 billion).

The two companies said they have entered an investment agreement in connection with a 70-euro-a-share offer. Shelly Group shares closed Wednesday at 64.40 euros.

Delivery Hero Cancels CEO Exit Plans Due to Uber's $14.8 Billion Takeover Bid

Delivery Hero scrapped plans for co-founder Niklas Östberg to step down as chief executive, citing Uber Technologies' $14.8 billion takeover bid.

The German food-delivery company had said in May that Östberg would step down in March of next year under plans for a leadership transition.

Arnault Family Moves to Cement Control of LVMH in Ownership Overhaul

France's Arnault family intends to simplify the structure of the companies that hold LVMH, a move designed to secure the clan's long-term control over the luxury conglomerate.

Under the plan, Bernard Arnault's Financiere Agache will take control of LVMH after holding company Christian Dior SE is delisted.

Central Banks Diverge on Rates as Energy Prices Threaten Higher Inflation

Central banks in Europe have responded in diverging ways to the prolonged period of high energy prices, with Switzerland and Sweden holding their key rates Thursday but Norway tightening borrowing costs.

The Swiss National Bank left its main interest rate unchanged as expected at 0% for the fifth straight quarterly meeting, while the Riksbank continued to hold its rate at 1.75%, where it has been since last September. The Norges Bank raised its key rate to 4.5% from 4.25%.

German Business Sentiment Climbs to Highest Level in Three Years

Sentiment among German businesses rose for a fifth straight month in September to its highest level since May 2023, as the country's tentative economic recovery holds.

The Ifo Institute said Thursday that its closely watched business-climate index, based on around 9,000 monthly responses from businesses, increased to 89.9 in September from 88.8 in August. That was a little better than consensus expectations of 89.0 by economists polled by The Wall Street Journal.

Trump-Xi Summit: Here's the Current State of the AI Battle

As the U.S.-China summit gets under way, the world's two biggest economies are locked in an artificial-intelligence arms race. Leadership on both sides believe future economic and military supremacy rides on mastery of the technology. On the Chinese side, the government is willing to subsidize the AI infrastructure to advance its agenda.

The first area of competition is in AI models. The best models are still made by two U.S. companies, OpenAI and Anthropic. Their current top offerings represent a big step up in capabilities from previous generations and can work on problems for a long time, persistently plugging away until they get the solution. They are particularly good at advanced math, coding, plus both hacking and cyber defense.

Judge Orders Trump to Lift Ban on CNN, MS NOW, Politico

A federal judge ordered President Trump to temporarily restore White House access for CNN, MS NOW and Politico journalists, days after the news organizations were banned over their coverage of the administration.

The removal of reporters' press badges was likely done without "constitutionally adequate due process," Judge Timothy Kelly said in a ruling issued early Thursday.

Canada's Carney Open to U.S. Trade Deal but Won't Give Up Right to Deepen EU Ties

UNITED NATIONS-A mutually beneficial trade pact between Canada and the U.S. is still possible, Canadian Prime Minister Mark Carney said, but his country won't give up its freedom to strike deals with the European Union and other parts of the world as it seeks to diversify global connections and protect its national sovereignty.

Trade talks between Washington and Ottawa collapsed in August, with President Trump imposing steep tariffs and Canada retaliating with levies of its own. In an interview with The Wall Street Journal, Carney indicated that some progress had been achieved since then, but not enough to clinch a deal.

Ukraine's Economy Hampered by Black Sea, Energy Disruptions, Says EBRD

An agreement with Russia to halt attacks on energy infrastructure would deliver a significant boost to Ukraine's battered economy, as would the restoration of grain exports through the Black Sea, the European Bank for Reconstruction and Development said Thursday.

In a report on the outlook for the economies in which it invests across parts of Europe, Asia and Africa, the development bank lowered its growth forecasts for Ukraine to reflect the damage caused by continued Russian attacks on its energy system. Ukraine has in turn attacked Russia oil refineries, causing shortages of fuels.

Federal Prosecutors Open Probe Into Jeffrey Epstein's Executors

Federal authorities have opened a probe into Darren Indyke and Richard Kahn, Jeffrey Epstein's longtime lawyer and accountant who are now his estate executors, according to people familiar with the matter.

Federal prosecutors in Manhattan in recent months have been scheduling interviews with potential witnesses and have requested documents about their dealings with Indyke, Epstein's lawyer, and Kahn, his accountant, the people said. The documents include emails and financial records.

Write to nina.kienle@wsj.com

TODAY IN CANADA Earnings:

BlackBerry Limited 2Q

Economic Indicators (ET):

0830 Jul Payroll employment, earnings and hours, and job vacancies

0830 Jul Retail trade

Stocks to Watch:

Aurora Cannabis: Application Filed With Alberta Securities Commission for Order Requiring Curaleaf to Comply With Securities Laws; Intends to Demonstrate Curaleaf's Circular Hasn't Satisfied Several Regulatory Requirements

OpenText Announces Pricing of Senior Secured Notes Offering to Redeem Outstanding 2027 Notes, Fund Tender Offer for Portion of Outstanding 2028 Notes Royal Bank of Canada Announces NVCC Subordinated Debenture Issue

Slate Grocery REIT Board Approves Suspension of Monthly Cash Distributions; Distribution Suspension Aimed at Enhancing Financial, Strategic Flexibility; Strategic Review Remains Active, Ongoing; Special Committee Continues to Evaluate Broad Range of Alternatives; Board Decision Not Taken in Response to Change in Fundamentals or Long-Term Outlook; Owns, Operates U.S. Grocery-Anchored Real Estate