Nasdaq-100 futures tumble as Treasury yields surge to pre-pandemic levels

Stock futures fell Tuesday, with Nasdaq-100 futures NQ00, -1.69% dropping 1% as U.S. Treasury yields shot higher across the board. S&P 500 futures ES00, -1.00% were off 0.5%, with Dow industrials futures YM00, -0.65% modestly lower. The losses came as the yield on the 10-year Treasury TMUBMUSD10Y, 1.828% climbed 5 basis points to 1.83% and that of the two-year note TMUBMUSD02Y, 1.038% jumped 9 basis points to 1.04%, both at levels not seen since early 2020, before the pandemic took hold. U.S. markets were closed on Monday for the Martin Luther King Jr. holiday. Investors are mulling prospects for Federal Reserve tightening amid inflationary pressures. Oil prices CL00, +1.62% BRN00, +1.20% were also surging on Tuesday, after Yemen’s Iranian-backed Houthi rebels targeting 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.