US Stock Futures Sink as Treasury Yields Rise and Iran War Fears Persist

US stock futures slid at the start of this week as investors remained anxious about rising Treasury yields and last week's weak performance in major indexes.

The Dow Jones Industrial Average futures fell by 18 points, or 0.03%, while S&P 500 futures dropped 0.1% and Nasdaq-100 futures declined 0.3%. These moves followed a week where all three major US indexes ended lower, with the Dow suffering its second consecutive weekly decline, down 0.8% for the week.

Rising Treasury yields have become a significant concern, as they make bonds more attractive to investors and increase borrowing costs for companies and consumers, putting pressure on stocks. The 30-year US Treasury yield climbed above 5.3%, its highest level in nearly 20 years, while government bond yields in Japan, France, and Germany also reached multiyear highs.

Investors are also worried about the potential impact of a longer US-Iran war on oil prices and inflation, which could be exacerbated by higher Treasury yields. The US Treasury attempted to calm the bond market with measures aimed at stabilizing the long end of the yield curve, but these efforts had short-lived effects.

This week's key events include the release of July Personal Consumption Expenditures (PCE) price index data on Wednesday and the Federal Reserve's Jackson Hole meeting, where investors will look for clues about the Fed's thinking on inflation, interest rates, and the economy. The artificial intelligence sector may also be a focus, with Nvidia set to report earnings on Wednesday.