Dow Jones futures fall 350 pts, US stocks set for weak open as crude tops $108, Treasury yield soar above…

Fresh updates from the financial markets indicate that US stocks were set to open softer on Tuesday, with Dow Jones futures falling nearly 350 points, amid a fresh surge in oil price marks and the US 10-year Treasury yield climbing above 5 percent. Soaring crude prices and rising yields further noted to concerns over interest rates and the outlook for artificial intelligence demand.

In the late afternoon (IST), Dow E-minis were down 341 points, or 0.65 percent, while S&P 500 E-minis declined 0.52 percent and Nasdaq 100 E-minis declined 0.58 percent.

The softness came as Brent crude jumped more than 2 percent to above $108 a barrel following fresh attacks on Saudi Arabian energy infrastructure, while Treasury yields advanced to marks not noted in nearly two decades. Market participants were additionally preparing for a widely anticipated The US central bank rate gain on Wednesday.

The benchmark 10-year US Treasury yield rose as high as 5.0328 percent, its highest since 2007, and was last up nearly 7 basis points at 5.0286 percent. Elevated yields can weigh on equity valuations while increasing the relative appeal of risk-free government debt.

Markets are now pricing in a 92 percent probability that the US The US central bank will raise interest rates on Wednesday, according to Reuters. Expectations for tighter monetary policy have strengthened after data last week revealed US consumer prices accelerated in August, while a measure of underlying inflation recorded its biggest gain in four months.

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Market participants will additionally be watching US Treasury Secretary Scott Bessent's appearance before Congress. The Treasury has expanded debt buybacks in an effort to ease pressure in the bond market, but yields have continued to climb.

Brent crude tops $108 after Saudi infrastructure attacks

Crude prices further noted to the pressure on equities as concerns over Middle East supplies intensified. Brent crude futures rose 2.37 percent to $108.18 a barrel, while West Texas Intermediate advanced 2.43 percent to $103.85.

The latest climb followed attacks on Saudi Arabian energy infrastructure that left the kingdom's East-West pipeline offline, raising concerns that damage to infrastructure and transport routes could take longer to repair.  The prolonged Middle East conflict and elevated energy prices have further noted another inflationary risk just as markets brace for tighter US monetary policy.

Alphabet, Microsoft decline as AI concerns persist

Technology stocks additionally remained under pressure after Monday's selloff, with Alphabet and Microsoft down more than 1 percent each in premarket trading. Chipmakers traded in a relatively narrow range after bearing the brunt of the previous session's slide, while Nvidia edged elevated.

The latest bout of softness in technology shares followed calls from executives at leading AI firms to slow the development of artificial intelligence over safety concerns. Uncertainty over what such a slowdown could mean for AI investment and demand has further noted pressure to a sector that has been a major driver of equity-market upside.

The broader risk-off mood extended beyond the US. MSCI's main world stocks index declined 0.28 percent on Tuesday after dropping 0.65 percent in the previous session.

Indian markets were additionally under pressure, with GIFT Nifty down 260 points, or 1.11 percent, at 23,183 in afternoon trade, reflecting the deterioration in global risk sentiment amid rising crude prices and bond yields.