US pre-open: Futures fall as Treasury yields hit 19‑year high ahead of Fed decision

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Tuesday, as traders awaited this week's Federal Reserve decision and another jump in Treasury yields weighed on sentiment. As of 1230 BST, Dow Jones futures were down 0.45%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.34% and 0.36% lower, respectively.

The Dow closed 152.09 points lower on Monday, taking a bite out of gains recorded in the previous session, as investors assessed fresh uncertainty around the artificial‑intelligence IPO pipeline and monitored another jump in oil prices.

Bond yields were in focus early on Tuesday as the yield on the 10‑year note briefly climbed to 5.041%, its highest level since 2007, extending a global bond selloff driven by concerns that the US‑Iran conflict will stoke inflation and force central banks into a more hawkish stance.

Oil prices also pushed higher after Saudi Arabia shut a key pipeline that bypasses the Strait of Hormuz, with Brent trading 0.68% higher at $106.40 a barrel and West Texas Intermediate uo 1.31% at $102.72 a barrel. Rising crude and surging yields will keep focus firmly on Wednesday's Fed meeting, where futures imply a 92% chance of a quarter‑point rate hike.

Elsewhere, Treasury Secretary Scott Bessent will testify before the House Financial Services Committee later on Tuesday, with inflation, energy prices and the economic fallout from the Iran war likely to dominate questioning. "The strength of our economy has allowed the United States to wage the greatest economic isolation campaign in the history of the world against the Islamic Republic of Iran and its enablers," Bessent was expected to tell the committee.

On the macro front, September's NY Empire State manufacturing index was slated for release at 1315 BST.

In the corporate space, Trip.com will report earnings after the close.







Reporting by Iain Gilbert at Sharecast.com