Wall Street points to more losses as oil, bond yields rise and odds of a Fed rate hike increase - LancasterOnline

U.S. equity futures pointed lower as rising oil prices and climbing bond yields combined with growing expectations of another Federal Reserve rate hike. Higher crude prices can feed inflation pressures, while rising Treasury yields increase the cost of borrowing and offer investors an alternative to stocks. Together, these forces can weigh on equity valuations, particularly for rate-sensitive sectors such as technology and real estate.

Markets are also repricing the path of monetary policy. When futures markets assign higher odds to a Fed hike, investors typically adjust by demanding more compensation for holding risk. That shift can tighten financial conditions even before any policy decision is made, since mortgages, corporate credit, and consumer loans often track longer-term yields.

What to watch: upcoming inflation and employment data, Fed officials' commentary, and the direction of energy prices. If oil and yields keep rising together, pressure on equities could persist. If either cools, markets may find room to stabilize.