US stock futures slip as yields, oil prices climb

U.S. stock index futures edged lower on Monday as rising Treasury yields and oil prices weighed on equity markets, while investors awaited key earnings from Nvidia and Walmart later in the week.

The benchmark 10-year Treasury yield, which moves inversely to prices, rose as high as 4.631% earlier in the day, its highest level since February 2025, before easing slightly to 4.597%. [US/]

The bond-market selloff was fueled by a surge in oil prices, as investors feared borrowing costs could remain elevated due to inflation pressures. Brent crude futures traded at $110.21 a barrel after efforts to end the Iran war appeared to stall following a drone strike on a nuclear power plant in the United Arab Emirates.

"The concern for investors is that higher yields do not stay confined to bond markets. They can weigh on equity valuations, particularly in growth and technology sectors, while also increasing pressure on governments carrying large debt burdens," said Lale Akoner, global market strategist at eToro.

Wall Street rallied sharply in recent weeks, with the benchmark S&P 500 and the tech-heavy Nasdaq trading at record highs as enthusiasm around artificial intelligence helped investors look past the inflationary threat from soaring oil prices.

That optimism faded with Friday's bond market rout. Traders are now pricing in a more than 40% chance the U.S. Federal Reserve will raise interest rates in January, according to CME's FedWatch tool, after last week's hotter-than-expected inflation readings.

At 05:47 a.m. ET, Dow E-minis fell 313 points, or 0.63%, S&P 500 E-minis lost 21.5 points, or 0.29%, and Nasdaq 100 E-minis shed 27.75 points, or 0.09%.

Minutes from the central bank's latest policy meeting, scheduled for release on Wednesday, are expected to offer clues on how much pressure there was within the committee to shift to a neutral stance and away from an easing bias.

Corporate earnings remain another crucial test for markets. Nvidia, the world's most valuable company, reports results on Wednesday, as a strong first-quarter earnings season draws to a close.

Expectations are high for the company, whose shares have risen 36% from a March low, while the Philadelphia SE Semiconductor Index has surged more than 60% on strong demand for AI-related chips.

Walmart, the largest retailer in the world, is also scheduled to report earnings this week. Its results could offer a clearer picture of how U.S. consumers are coping with higher energy prices and broader inflation pressures.

Among premarket movers on Monday, Dominion Energy jumped 11.2% after Bloomberg News reported power firm NextEra Energy was discussing a mostly stock deal for the smaller utility that would value it at about $76 per share, or around $66 billion.

UnitedHealth Group fell 5.9% after Berkshire Hathaway said it had sold many of its smaller stock holdings, including in the health insurer.

(Reporting by Ragini Mathur in Bengaluru; Editing by Pooja Desai)

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This story was originally published May 18, 2026 at 6:19 AM.