FX.co ★ US Futures Hold Pullback

US equity index futures edged lower on Tuesday, extending the previous session’s pullback under renewed pressure from rising bond yields. Futures on the S&P 500, Dow, and Nasdaq 100 each slipped as much as 0.3%. Long-dated Treasury yields climbed further after an escalation of strikes in the Middle East darkened the outlook for regional energy supplies, heightening inflation concerns and the prospect of a more hawkish Federal Reserve. Markets are widely expecting the Fed to raise interest rates by 25 basis points tomorrow, as higher fuel costs have helped drive underlying inflation higher this year.

Most equity sectors traded in negative territory, with credit‑sensitive AI hyperscalers leading the declines as their growing debt loads collide with rising borrowing costs. Shares of Alphabet, Microsoft, and Meta were down about 1%. By contrast, chipmakers rebounded from the prior day’s selloff as investors weighed whether heightened focus on AI safety risks could slow the pace of infrastructure investment. Nvidia, Lam Research, and Intel each gained around 1%.