Traders work on the floor at the New York Stock Exchange in New York City, U.S., June 3, 2026.
Brendan McDermid | Reuters
S&P 500 futures fell on Tuesday, pressured by a rise in Treasury yields amid concerns of persistent inflation and elevated oil prices. A pullback in semiconductor stocks also weighed on the broader market.
Contracts tied to the broad market index fell 0.4%, while Nasdaq-100 futures were down 1.1%. Western Digital fell more than 5%, weighing on Nasdaq futures. Sandisk dropped more than 4%. Marvell Technology and Seagate Technology were both down by more than 5%.
Dow Jones Industrial Average futures traded just 48 points lower, or 0.1%, with losses kept in check in part because of a 1% advance in Home Depot shares after the home improvement giant posted a second-quarter earnings beat.
The 30-year Treasury bond yield climbed nearly 2 basis points to 5.329%, trading around levels not seen in nearly two decades. The yield on Monday hit its highest level since June 2007.
Yields have been rising of late as investors worry that oil prices could stay elevated, with negotiations between Iran and the U.S. stalling. President Donald Trump said Monday he would attack Oman “if it gets in the way.”
U.S. crude rose on Monday and climbed another 0.7% on Tuesday to trade above $85 per barrel.
“Because of the strength of the AI trade, stocks haven’t cared about the persistent rise in global bond yields but it’s just a matter of when, not if, if this trend in rates continues, which I think it will as a bear on long duration,” said Peter Boockvar, chief investment officer at One Point BFG Wealth Partners.
Across the Atlantic, European markets slipped into the red in morning trade. The pan-European Stoxx 600 fell 0.51%. The French CAC 40 lost 0.55%, and Italy’s FTSE MIB was 0.59% lower, while Germany’s DAX shed 0.38%. In London, the FTSE 100 was down less than 0.1%.
Asia-Pacific markets ended in the red. South Korea’s Kospi fell 1.55%. Japan’s Nikkei 225 dropped 2.54%. Australia’s benchmark S&P/ASX 200 closed flat. Mainland China’s CSI 300 declined 0.32%, while Hong Kong’s Hang Seng Index was little changed.