U.S. stock futures pointed to a third consecutive day of losses on Tuesday as elevated oil prices and rising bond yields weighed on sentiment, extending a pullback from record highs hit last week.
The S&P 500 futures contract was off 0.4% in early trading, with Nasdaq 100 futures down 0.6% and the Dow futures contract pointing to an opening loss of roughly 77 points, equivalent to 0.2%
The S&P 500 and Nasdaq Composite had hit fresh record highs as recently as Thursday before turning lower. Brent crude, while slipping about 1% on Tuesday to about $110 a barrel, remains more than 80% higher year-to-date, according to MarketWatch. The Strait of Hormuz remains largely blocked, keeping supply tight.
Late Monday, Trump announced he was standing down from a planned military strike on Iran, citing requests from three Middle Eastern regional leaders. The announcement helped oil prices ease, but strategists cautioned it represented a limited shift. “Oil is still up roughly 80% year-to-date, and the Strait of Hormuz remains largely blocked,” Munnelly added in the same note, as cited by MarketWatch. Rising bond yields are compounding the pressure on stocks.