Stocks fall as Treasury yields surge

Stock futures fell Tuesday with Nasdaq-100 futures NQ 00 dropping 1% as U.S Treasury yields shot higher across the board. S&P 500 futures ES 00 were off by 0.5%, with Dow industrials futures YM 00 being modestly lower. The yield on the 10 year Treasury TMUBMUSD 10 Y rose 5 basis points to 1.83% and that of the two-year note TMUBMUSD 02 Y rose 9 basis points to 1.04%, both at levels not seen since early 2020, before the epidemic took hold. The markets in the U.S. were closed on Monday for Martin Luther King Jr. holiday. There are investors who are thinking of Federal Reserve tightening amid inflationary pressures. Oil prices CL 00, BRN 00, were also on Tuesday after Yemen's Iranian-backed Houthi rebels targeted a key oil facility in Abu Dhabi, killing three people and triggering a fire at the country's international airport on Monday. U.S. crude prices rose over 2% to $85.73 a barrel.