US Futures Turn Lower as Yields Rise
US equity futures are mostly lower on Tuesday, with S&P 500 and Nasdaq contracts down 0.5% and 1.3% respectively, as long-term Treasury yields extend to multi-year highs.
US equity futures were mostly lower on Tuesday, extending losses from the previous session as higher borrowing costs offset recent support from AI infrastructure companies.
Contracts for the S&P 500 and Nasdaq were 0.5% and 1.3% down, respectively, and those for the Dow were flat.
Long-term Treasury yields extended their surge to multi-year highs as inflation risks and surging bond issuance from AI companies raised different estimates on term premia.
Inflationary concerns were magnified by more increases in energy prices as the US signaled a prolonged blockade on Iran tanker exports.
AI companies were mostly lower, with Nvidia, Meta, Tesla, and Oracle dropping up to 3% premarket.
Credit-sensitive financial companies were also under pressure with Goldman Sachs and JPMorgan trading in the red.
Meanwhile, Home Depot gained around 1% after beating earnings estimates despite high borrowing and housing costs.