Source: Sharecast
Before the opening bell on Wall Street, the yield on a 10-year US Treasury was up 5.3 basis points at 4.544%, hitting its highest since mid-February.
Futures trading was showing losses of 0.7% across the Dow, S&P 500 and Nasdaq early on. The S&P 500 was on track to retreat for the second day after closing at 5,963.60 on Monday – its highest close since 24 February.
The reduction in risk appetite was evident on commodity markets, with gold prices up 0.9% at $3,341.60 an ounce on the back of safe haven demand as rising geopolitical risks hit sentiment. A weaker dollar – the US dollar index fell to a two-week low – was also propping up bullion prices.
"An escalation of conflict in the Middle East is back at on the worry lists following reports that Israel could be planning to hit Iranian nuclear sites," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"The situation in Ukraine is also a fresh cause for concern, as although Trump as said negotiations for a truce will start soon, the US administration appears to be retreating from a role as broker in attempting to end the conflict."
Mortgage applications data for last week was set to be the only major economic data release of Wednesday's session, while speeches from Federal Reserve Bank of Richmond president Thomas Barkin and Fed governor Michelle Bowman will be closely watched.