Global Bond Yields Surge Amid U.S.-Iran Tensions and Fed Uncertainty

The stock market remains cautious ahead of key U.S. economic data and the Federal Reserve's Beige Book, while renewed U.S.-Iran strikes and a sharp rise in global bond yields keep risk appetite in check.

The S&P 500 Futures were flat at 7,637.5 points by 03:20 ET, while Nasdaq 100 Futures were unchanged at 29,112 points and Dow Jones Futures rose 0.17% at 52,914 points.

Investors are being pulled in two directions, with expectations for higher interest rates weighing on stock valuations and renewed tensions in the Middle East keeping oil prices and inflation risks elevated.

The Bank of Canada is expected to hold its benchmark rate at 2.25%, but investors will be watching the tone of the statement for clues about how other central banks are responding to persistent inflation and elevated borrowing costs.