FX.co ★ US Futures Drop on Surging Bond Yields

US stock futures fell on Tuesday as global bond yields jumped to multi‑year highs, reflecting growing concerns over heavy government spending and stubborn inflation. The 10‑year US Treasury yield moved toward 4.75%, nearing its highest level since January 2025, while the 30‑year yield climbed to its highest since 2007.

Markets were also weighed down by ongoing tensions in the Middle East and rising oil prices, as hopes dimmed for a new peace agreement between the US and Iran and efforts to reopen the Strait of Hormuz remained at an impasse.

In Monday’s regular session, the Dow Jones Industrial Average slipped 0.51%, the S&P 500 fell 0.52%, and the Nasdaq Composite declined 0.32%. Ten of the S&P 500’s 11 sectors finished lower, led by communication services, consumer staples and financials.

Investors are now focused on upcoming retail earnings from Home Depot, Lowe’s and Walmart later this week, looking for fresh signals on the resilience of consumer spending.