Wall Street faces a bearish start as rising Treasury yields and Middle East supply disruptions weigh on sentiment ahead of the Federal Reserve's two-day policy meeting.
Philadelphia Semiconductor Index recorded its largest daily decline since July, dragging tech futures lower.
Dow futures fell 266 points ahead of the Fed meeting amid rising Treasury yields and oil prices.
S&P 500 futures declined 28 points as investors turned cautious before the Fed decision.
Nasdaq 100 futures fell 90 points, pressured by a drop in semiconductor shares.
Oil prices extended gains on escalating Middle East supply disruptions, including Strait of Hormuz tensions.
Brent crude rose alongside WTI as attacks on Saudi infrastructure threatened global oil flows.
US stock futures retreated Tuesday as the 10-year Treasury yield breached 5% for the first time since 2023. Investors are bracing for a likely 25-basis-point rate hike from the Federal Reserve while navigating supply-driven volatility in global oil markets.
Futures are falling due to a combination of rising 10-year Treasury yields, which recently topped 5%, and investor caution regarding the Federal Reserve's upcoming interest rate decision.