05.10.202611:01:13UTC+00US Stock Futures Slip as Treasury Yields Stay Elevated

US stock futures signaled a muted open on Monday, with contracts tied to the Dow Jones, S&P 500, and Nasdaq-100 each slipping less than 0.2%. Caution dominated sentiment as elevated Treasury yields weighed on risk appetite ahead of this week’s Federal Reserve policy meeting. The yield on the 10-year Treasury note climbed to its highest level in more than two decades, stoking concerns that higher borrowing costs could pressure equity valuations even if the Fed opts to leave interest rates unchanged in the near term.

At the same time, markets continued to digest last week’s weaker-than-expected jobs report, which tempered expectations of an additional rate hike this month and offered some relief following a sharp run-up in bond yields. Investor attention now turns to a series of key economic indicators: Monday brings the Institute for Supply Management’s services activity index, followed on Wednesday by the release of minutes from the Fed’s September meeting. On Friday, markets will parse the University of Michigan’s preliminary October reading on consumer sentiment.