How are stock-index futures trading:
S&P 500 futures are down 0.4%.
Dow Jones Industrial Average futures are off 0.3%.
Nasdaq 100 futures are retreating 0.5%.
On Monday, the Dow Jones Industrial Average fell 344 points, or 0.8%, to 42,932, the S&P 500 declined 11 points, or 0.18%, to 5,854, and the Nasdaq Composite gained 50 points, or 0.27%, to 18,540.
Index futures are lower early Tuesday as rising Treasury yields suggest concerns about the growing U.S. fiscal deficit are building ahead of the presidential election in two weeks time.
The 10-year Treasury yield is at its highest in nearly three months. It has jumped some 60 basis points since mid September, first on signs of stronger-than-expected U.S. economic data, and latterly in response to concerns that a Donald Trump election victory would lead to an increase in government debt issuance and a jump in inflation if he introduces import tariffs as planned.
Generally, stocks prefer lower bond yields as this signals cheaper borrowing costs.
“Markets have started the week a bit more nervously than during the last six where the the S&P 500 has gone up each week for only the second time since the pandemic.” said Jim Reid, strategist at Deutsche Bank.
“In the background there has been a rising concern about debts and deficits, particularly ahead of the U.S. election,” Reid added.