US Stock Market: Wall Street Futures Gain as Oil Prices Pull Back

Brent crude futures fell more than 1% on Tuesday as attention turned to signs of stronger oil exports from the Gulf. The decline followed Monday’s rise in crude prices after President Donald Trump rejected an Iranian proposal linked to reopening the Strait of Hormuz. Oil prices remained elevated even after Tuesday’s pullback.

The pause in oil’s rise coincided with a modest easing in Treasury yields. The benchmark 10-year yield closed Monday at 5.241%, its highest close since 2007. It climbed above 5.26% early Tuesday before falling back. One later morning reading put the yield near 5.220%, while the 30-year yield was around 5.542%. Yields move in the opposite direction from bond prices.

The levels kept borrowing costs in focus. Higher yields can raise financing costs for companies and households, while expensive oil can add to inflation. Australia’s central bank raised its interest rate to a 15-year high on Tuesday. In the US, traders were looking to upcoming economic reports for clues about the Federal Reserve’s next move.