The 10-year yield reached its highest level since 2007, while oil prices climbed above $107 a barrel on a Saudi pipeline closure

US stock futures pointed to a slightly lower open on Tuesday as the yield on the benchmark 10-year Treasury moved back above 5%, while investors awaited the Federal Reserve’s monetary policy decision. The 10-year yield reached its highest level since July 2007 amid continued market attention on inflation and the outlook for US interest rates.

Dow Jones futures fell nearly 350 points as surging crude oil prices and the US 10-year Treasury yield topping 5 percent weighed on US stocks ahead of the Federal Reserve

US equity futures traded lower on Tuesday as the Federal Reserve prepared to begin its two-day policy meeting, with investors also assessing higher Treasury yields, oil prices and developments affecting energy supplies in the Middle East. Dow futures declined 266 points, or 0.

US stock futures moved lower on Tuesday ahead of the Federal Reserve’s two-day monetary policy meeting, while investors also monitored higher oil prices, Treasury yields and developments in the Middle East. At 03:20 ET, Dow futures were down 266 points, or 0.

The major averages closed lower on Monday as higher bond yields and oil prices kept the market under pressure.

The Federal Open Market Committee (FOMC) meeting is scheduled for Sept. 15–16.

The three major averages are coming off a losing week.

Dow Jones futures: Nvidia stock, Micron and Sandisk dived on an AI warning ahead of a widely expected rate hike at this week's Fed meeting.