Investors Brace for Fed Decisions Amid Geopolitical Tensions

U.S. stock indexes are poised to open lower amidst investor caution over Federal Reserve rate cuts and geopolitical tensions. Treasury yields rose, impacting major tech stocks, while tensions in the Middle East affected oil prices. Key inflation data and earnings reports are anticipated later this week.

U.S. stock indexes were set to open lower on Monday as investors adjusted their expectations for Federal Reserve rate cuts amidst escalating geopolitical tensions. The market's attention remains on crucial inflation data and upcoming third-quarter earnings reports.

U.S. Treasury yields rose, surpassing 4% on 10-year notes for the first time in two months. This increase pressured mega-cap growth stocks, with Alphabet, Microsoft, Apple, and Amazon seeing declines in pre-market trading. Hezbollah's rocket attacks on Haifa added to the market uncertainties.

Wall Street's fear gauge reached its highest in over a month as concerns grew over energy price spikes due to Middle East conflicts. However, earnings outlooks remain optimistic, with Goldman Sachs adjusting its S&P 500 target and decreases in recession odds. The significant test for Wall Street's rally this year lies in the upcoming third-quarter earnings.

(With inputs from agencies.)