S&P 500 Futures Fall as Bond Yields Continue Upward Trend

How Are Stock-Index Futures Trading?

• S&P 500 futures are down 0.57%.
• Dow Jones Industrial Average futures are slipping 0.46%.
• Nasdaq 100 futures are falling 0.66%.

On Tuesday, the Dow Jones Industrial Average fell 217 points, or 0.55%, to 38,853. The S&P 500 increased by 1 point, or 0.02%, to 5,306, while the Nasdaq Composite gained 99 points, or 0.59%, to reach 17,020.

Futures indicate U.S. stock indices will open Wednesday’s session in the red as Treasury yields trade near four-week highs.

Bonds have sold off again following two poorly received Treasury auctions on Tuesday. This sell-off was driven by stronger-than-expected consumer confidence data and remarks from a Federal Reserve official, suggesting it will take several more months of stable inflation before considering a rate cut.

The probability of a rate cut in September has dropped below 50%, down from nearly 60% last week.

Concerns about persistently high borrowing costs are clashing with optimism over major tech stocks—Nvidia hit a new record on Tuesday—shaping the market’s direction, according to Susannah Streeter, head of money and markets at Hargreaves Lansdown.

“Financial markets are fracturing in terms of sentiment, with AI exuberance continuing to power mighty tech while worries about high interest rates linger, keeping investors cautious elsewhere,” she said.