Bond Yields and Oil Prices Slam US Stock Market

The US stock market is facing pressure as bond yields and oil prices surge. Nasdaq futures plummeted by over 1% in pre-market trading, while S&P 500 and Dow futures fell by 0.55% and 0.15%, respectively.

The 30-year Treasury yield reached a 19-year high of 5.327%, with the benchmark 10-year yield climbing to 4.739%. This move is tightening financial conditions, despite no immediate Fed increase, according to OCBC strategist Vasu Menon.

Oil prices are also contributing to the market's woes, with Brent crude above $91 after a temporary US-Iran ceasefire expired without a permanent agreement. If oil stays above $90, it could pressure fuel and transport costs, making recent improvements in US inflation harder to sustain.