Wall Street futures decline up to 1% as yields climb on rate hike concerns

In Asian markets, South Korea’s Kospi ended higher, while Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled lower.
US futures decline in trade.

Wall Street futures declined up to 1 percent on Tuesday afternoon, India time, pointing to a weak opening for US equities as elevated bond yields and higher oil prices weighed on investor sentiment.Nasdaq 100 futures fell 1 percent as stocks linked to the global buildout of artificial intelligence lost ground. S&P 500 futures slipped 0.6 percent, while Dow futures declined 0.58 percent.Global bond yields and oil prices rose as traders remained concerned about oil-driven inflation, monetary tightening and worsening fiscal conditions.Brent crude futures jumped 2 percent to above USD 92 per barrel after renewed fighting between the US and Iran.The weakness also extended to Europe, where declines in mining stocks as well as travel and leisure shares put the Stoxx 600 on course for its worst day since July.Euro-area inflation quickened to its highest level in almost three years, strengthening expectations of an interest-rate hike next week.Higher yields on risk-free US Treasuries make equities less attractive to investors as they increase the cost of taking on additional risk.In Asian markets, South Korea’s Kospi ended higher, while Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled lower.Meanwhile, the Indian benchmark indices Sensex and Nifty settled marginally lower.The Sensex ended flat, down 12.99 points, or 0.02 percent to settle at 76,944.28. At 3:12 pm, the benchmark was at the 76,685.48 level, down 271.79 points, but recovered most of the losses during the Closing Auction Session (CAS), which was introduced by the Securities and Exchange Board of India (Sebi) from August 3 in a phased manner.During the day, the benchmark dropped 301.15 points, or 0.39 per cent to 76,656.12.The Nifty slipped 24.60 points, or 0.10 percent to end at 24,055.80 on the weekly expiry day. The Nifty was also down almost 100 points at 23,980.55 at 3:20 pm.