US Stock Market Crash Aftermath: High Yields Among 3 Reasons Why S&P 500, Dow, Nasdaq Futures Are Falling

US stock futures were mixed on Tuesday as investors remained cautious after Wall Street's sharp decline in the previous session. Elevated Treasury yields, uncertainty around the Iran war and weaker Asian equities are keeping sentiment under pressure.

S&P 500 futures were at 7,746.25, down 0.50 points, or 0.01%. Dow Jones futures stood at 51,813, down 24 points, or 0.05%, while Nasdaq-100 futures were at 30,608, up 41.75 points, or 0.14%.

Here are the three reasons why S&P 500, Dow, Nasdaq futures are falling: 

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1. US-Iran Uncertainty

Investors continue to monitor developments around the US-Iran conflict, now entering its eighth month. The prolonged war has strained global energy supplies, with the Strait of Hormuz remaining a key concern for oil markets.

ALSO READ: 'If Iran Cannot Sell Oil, No One Else Will': Tehran Issues Stark Regional Warning If Security Not Guaranteed

Axios reported on Monday, citing US officials, that President Donald Trump was willing to consider sanctions relief and the release of frozen Iranian funds in exchange for concrete steps on Tehran's nuclear programme. Trump later denied the report in a post on Truth Social.

Rising oil prices amid the conflict have added to concerns over inflation and the outlook for US interest rates.

2. Treasury Yields Remain Elevated

Rising bond yields remain one of the biggest pressure points for US equities. The benchmark 10-year Treasury yield surged past 5.2% on Monday, approaching levels last seen in 2007. The 30-year yield climbed above 5.56%, trading around levels seen in 2004.

On Tuesday, the 10-year yield was little changed at around 5.234%, while the 30-year yield eased 1 basis point to 5.549%. The two-year Treasury yield was around 4.9472%.

Higher yields can weigh on equity valuations by making bonds relatively more attractive while increasing borrowing costs for businesses and consumers.

ALSO READ: Oil Prices Rise For Second Day: Brent Crude Nears $107 As US-Iran Talks Stall Despite Saudi Pipeline Restart

3. Asian Equities Close Mixed To Lower

Weakness across parts of Asia also reflected the cautious mood among investors. Japan's Nikkei 225 fell 0.6% to 65,481.27, while the Topix declined 1.7% to 4,041.13. South Korea's Kospi slipped 0.3% to 6,870.81, although the Kosdaq gained 0.4% to 849.8.

Australia's S&P/ASX 200 rose 0.3% to 8,709.3, while mainland China's CSI 300 added 0.1% to 4,345.21. Hong Kong's Hang Seng Index was down 0.4% in the final hour of trade.

Notably, US stocks had ended sharply lower on Monday as investors reacted to higher Treasury yields, rising oil prices and concerns surrounding the artificial intelligence sector.

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