U.S. Stock Market Faces Pressure Amid Rising Treasury Yields

U.S. stock indexes are set for a lower opening as Treasury yields rise, affecting rate-sensitive shares. Despite some companies like 3M adjusting profit forecasts positively, others like GE Aerospace struggle with supply constraints. Investors are cautious amid economic indicators and upcoming presidential elections.

U.S. stock indexes appeared headed for a weaker start on Tuesday, as rising Treasury yields exerted pressure on rate-sensitive shares. Investors are keenly analyzing recent company earnings to assess the health of the corporate sector.

Ahead of market opening, 3M saw a 5.6% uptick after raising the lower end of its profit forecast for the year. However, GE Aerospace's shares dipped 5.2%, despite a promising profit forecast for 2024, due to ongoing supply constraints affecting revenues. The mixed results signal challenges companies face in meeting investor expectations.

The rise in U.S. Treasury yields, as high as 4.222% on the 10-year note, comes as the market assesses the impact of the impending presidential election and the strong U.S. economy on the Federal Reserve's policy. Major indexes such as the Dow, S&P 500, and Nasdaq are experiencing declines, with rate-sensitive megacaps like Tesla and Apple also slipping.

(With inputs from agencies.)