Stock Futures Retreat, 10-Year Treasury Yield Hovers Around 5% as Investors Await Fed Decision — Update
By Joseph WilkinsU.S. stock futures retreated on Tuesday while the 10-year Treasury yield hovered around 5%, ahead of a key Federal Reserve policy decision Wednesday.The U.S. central bank is widely anticipated to hike interest rates by 25 basis points--its first increase since 2023--piling further pressure on equity markets and global bond yields as the conflict in the Middle East worsens.Futures for the Dow Jones Industrial Average were down 0.3%, while S&P 500 futures were 0.2% lower and Nasdaq futures fell 0.15%.Oil prices continued to rise as Saudi Arabia's East-West pipeline stayed shut, while Houthi militants in Yemen strengthened their position around the Red Sea corridor.Brent crude futures rose 0.3% to $105.99 a barrel, while West Texas Intermediate gained 0.97% to $102.30 a barrel, as concerns over Middle East crude supplies continued to mount.European indexes were also negative in afternoon trade. The Europe-wide Stoxx 600 index was 0.1% lower, while London's FTSE 100 was down 0.3%. France's CAC 40 was down 0.2% and Germany's DAX traded just below the flatline. Asian bourses closed broadly lower.The U.S. dollar rose and gold fell on Tuesday, as the potential for higher interest rates strengthened the greenback and pressured the yellow metal. Meanwhile, Bitcoin declined 2.6% to $76,909, ahead of a crucial procedural vote in the Senate on proposed legislation that could offer regulatory clarity across digital assets.Monday's losing session in the U.S. came as some of the world's biggest artificial-intelligence companies called for the industry to slow development of the technology for safety reasons. The Dow Jones Industrial Average retreated 0.3% on Monday, while the S&P 500 lost 0.5% and the tech-heavy Nasdaq composite fell 0.6%.Write to Joseph Wilkins at [email protected]