LUN:CC - Futures Drop as Treasury Prices Climb
Stock futures turned down on Tuesday as traders kept an eye on rising Treasury yields, which hit a 16-year high.
Futures for the Dow Jones Industrials withered 155 points, or 0.5%, to 33,483.
Futures for the S&P 500 weakened 24 points, or 0.6%, at 4,300.25.
Futures for the NASDAQ subtracted 102.75 points, or 0.7%, to 14,882.
The 10-year Treasury yield traded at 4.735%, climbing to its highest level since Aug. 15, 2007. The benchmark yield has surged in the past month, as traders assess the possibility of tighter Federal Reserve for longer.
Investors have been fretting recently over the potential of higher interest Federal Reserve for longer, fearing that tighter monetary policy could tip the economy into a recession. This has pushed Treasury yields to levels not seen in more than a decade.
On the economic data front, investors will be watching the Job Openings and Labor Turnover Survey for August, due Tuesday morning.
Economists polled by Dow Jones anticipate 8.8 million job openings.
In Japan, the Nikkei 225 faltered 1.6% Tuesday, while in Hong Kong, the Hang Seng returned to trading with a loss of 2.7%.
Oil prices fell 41 cents to $88.41 U.S. a barrel.
Gold prices sank $5.50 to $1,842.10 U.S. an ounce.