By Medha Singh
(Reuters) - Wall Street was on pace to open lower on Thursday, weighed down by U.S. Treasury yields hitting fresh seven-year highs and Cisco's disappointing forecast, while looming Sino-U.S. trade talks added to the jitters.
Ten-year U.S. government Treasury yield, a key driver of global borrowing costs, hit a high of 3.1 percent as more expensive oil pointed to faster inflation and followed some upbeat U.S. retail sales numbers.
Oil prices hit $80 per barrel for the first time since November 2014 on concerns that Iranian exports could fall due to renewed U.S. sanctions and reduce supply in an already tightening market.
"There's a lot of chatter that the 10-year is somehow going to explode to the upside, that's why its getting everybody's attention," Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh.
"There is a lot of worry out there that might be reflected in the market ... and trade is the icing on the cake."
The United States and China will resume negotiations over the next two days to resolve their differences over trade, and officials from both sides have recently signaled that they are looking for a deal.
Shares of Cisco, a component of all three major U.S. indexes, fell 3.9 percent in premarket trading after the company's disappointing forecast indicated its transition to a software-focused business was a work in progress.
However, J.C. Penney Co tumbled 10.4 percent after its same-store sales missed estimates and the company warned its could post a loss this year.
On the economic front, data showed new applications for U.S. jobless benefits increased more than expected last week, but the number of Americans on unemployment rolls fell to the lowest since 1973, pointing to diminishing labor market slack.
(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)