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Update: US Equity Futures Drop Pre-Bell as 10-Year Treasury Yield Surpasses 5% Ahead of Fed Decision

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(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)

US equity futures were edging slightly lower pre-bell Tuesday as the 10-year Treasury yield hovered above 5% ahead of the Federal Reserve's interest-rate decision on Wednesday.

Dow Jones Industrial Average futures were 0.3% lower, S&P 500 futures were down 0.1%, and Nasdaq futures were 0.1% lower.

The benchmark 10-year Treasury yield climbed to its highest level since 2007, reaching as much as 5.041% before edging back to around 5%.

President Donald Trump said that claims that artificial intelligence is "taking over the world" are a hoax, after tech leaders called for a slowdown in the advancement of AI models. "AI and Data Centers will be the Greatest Economic Development Engine in History -- Bigger than Oil, Gold, Diamonds, or even the Internet," Trump said in a post on Truth Social.

The Federal Reserve policy session starts Tuesday and concludes with a rate announcement on Wednesday. There is a 92.5% chance the Fed will raise rates by 0.25%, according to the CME Group FedWatch indicator.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.7% at $106.38 per barrel and US West Texas Intermediate crude 1.3% higher at $102.73 per barrel.

The New York Federal Reserve's Empire State manufacturing index decreased to 7.6 in September versus 20.6 in August, compared with expectations for a decline to a reading of 15.0 in a survey compiled by Bloomberg.

In other world markets, Japan's Nikkei closed flat, Hong Kong's Hang Seng ended 1% lower, and China's Shanghai Composite finished 0.5% lower. Meanwhile, the UK's FTSE 100 was down 0.3%, and Germany's DAX index was 0.1% lower in Europe's early afternoon session.

In equities, Accenture (ACN) stock was down 2.4% after a Bloomberg report Monday that the company has agreed to pay $25 million to resolve allegations by the US Department of Justice that it discriminated based on race and sex in hiring and promotion decisions. Sysco (SYY) shares fell 2% after the company said late Monday it priced a public offering of 12.3 million common shares at $81 each. Axon Enterprise (AXON) stock was 4.2% lower after the company said it intends to offer $1 billion of 0% convertible senior notes due 2031 in a registered public offering.

On the winning side, Nokia (NOK) shares rose 2.4% after the company and Telxius said they are deploying 800G optical technology across terrestrial networks in Europe, the US and Latin America to meet rising cloud, AI and data-center connectivity demand. Teradyne (TER) stock was up 1.8% after the company said late Monday it opened an office in Bengaluru, India, in a bid to expand its footprint in the country. Rocket Lab (RKLB) shares were 1.7% higher after the company said it has completed its at-the-market equity offering, raising $1.94 billion in gross proceeds through the sale of 29.3 million shares to help fund its pending acquisition of Iridium Communications (IRDM).

What else is happening in Asia Markets?

Asia Markets

Update: Semiconductors Help Push US Equity Indexes Lower While Benchmark Treasury Yield Hits 5%

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes fell amid declines in mega-cap semiconductor names while the 10-year benchmark government bond yield crossed 5% as crude oil prices extended gains.The Nasdaq Composite fell 0.6% to 26,146.41, the S&P 500 declined 0.5% to 7,619.98, and the Dow Jones Industrial Average slipped 0.3% to 52,421.20 on Monday. Technology led decliners while communication services was among a trio of gainers.Dario Amodei, chief executive of AI chatbot Claude maker Anthropic, called on the industry Saturday to slow the pace of developing AI model capabilities. His three-step plan to ensure that safety measures keep pace with advances in AI model capabilities includes placing independent evaluators inside leading AI companies with "employee-like access." OpenAI CEO Sam Altman and Tesla (TSLA) and SpaceX (SPCX) CEO Elon Musk supported Amodei's call in posts on X.President Donald Trump, however, pushed back against any idea of new AI guardrails and criticized Amodei's call for restraint, Bloomberg reported. In a category of stocks with market capitalization exceeding $200 billion, Micron Technology (MU), SK Hynix (SKYH), and ASML (ASML) were among the bottom 10 on Monday, according to data compiled by Finviz.Iran wants to reach a deal with Washington, Trump said Monday. "The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the U.S.A. will choose to engage - The concept of which we are open to," Trump wrote in a social media post on Truth Social.Meanwhile, Saudi Arabia seeks to further boost crude oil supply through the Strait of Hormuz after attacks by the Iran-aligned Houthi militia group forced it to halt a key pipeline that's been the main alternative route for getting its crude to global markets during the Iran war, Bloomberg reported, citing a person familiar with the matter. The kingdom had been raising shipments through the contested Hormuz waterway in the first 10 days of this month from August levels, and is now trying to increase supplies further, the person told the news agency.Gulf Arab states postponed a planned meeting with Iran, and Yemen's Houthis launched a fresh attack on Saudi Arabia, Reuters reported.The front-month US West Texas Intermediate crude oil contract rose 1.8% to $101.84 per barrel, and the global benchmark North Sea Brent edged up 1.5% to $106.20 per barrel. Both crude types were off session highs.Ahead of the Federal Reserve's monetary policy announcements on Wednesday, interest rate traders are now pricing in a 95% probability that the Fed will raise its target rate by 25 basis points, up from 33% a month ago, according to the CME FedWatch tool.US Treasury yields rose across the curve. After hitting a high of 5.01% intraday, the 10-year yield was up 1.9 basis points to 4.99% in the final leg.In company news, Corning (GLW) said Friday it entered into an equity distribution agreement to sell its common stock from time to time, with an aggregate offering price of up to $2 billion. Corning shares sank nearly 14%, the worst performer on the S&P 500.In precious metals markets, gold futures dropped 1.6% to $4,337.3, and silver futures slumped 2.3% to $63.72.

Dow JonesNasdaq CompositeS&P 500$ASML$GLW$MU$SKHY$SPCX$TSLA
Asia Markets

Update: US Equity Indexes Retreat as 10-Year Treasury Yield Crosses 5% Threshold, Crude Oil Extends Gains

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes declined after the 10-year benchmark government bond yield hit a 52-week high of 5.01% and crude oil jumped as inflation concerns mounted amid a widening war in Iran.The Nasdaq Composite fell 0.2% to 26,294.2, the S&P 500 declined 0.3% to 7,635.5, and the Dow Jones Industrial Average slipped 0.2% to 52,470.1 after midday Monday.The front-month US West Texas Intermediate crude oil contract jumped 1.6% to $101.64 per barrel, and the global benchmark North Sea Brent rose 1.2% to $105.91 per barrel.Gold futures dropped 1.3% to $4,353.30, and silver futures slumped 1.6% to $64.18.Gulf Arab states postponed a planned meeting with Iran, and Yemen's Iran-aligned Houthis launched a fresh attack on Saudi Arabia, Reuters reported.Iran wants to reach a deal with Washington, President Donald Trump said Monday. "The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the U.S.A. will choose to engage - The concept of which we are open to," Trump wrote in a social media post on Truth Social.Yemen's Houthis launched a large-scale ballistic missile and drone attack on Saudi Arabia's King Khalid Air Base in Khamis Mushait and claimed "direct hits," Al Jazeera, a Middle Eastern broadcaster, reported. Riyadh gave no immediate response, the news agency said. The Iran-backed rebels captured more strategic islands in the southern Red Sea, strengthening their control of a crucial Bab al-Mandeb shipping route, the news outlet cited the rebels as saying.Meanwhile, ahead of the Federal Reserve's monetary policy announcements on Wednesday, interest rate traders are now pricing in a 90% probability that the Fed will raise its target rate by 25 basis points, up from 33% a month ago, according to the CME FedWatch tool. The odds of another policy pause next week plunged to 10% from 67% a day earlier.US Treasury yields traded mixed. After hitting a 52-week high, the 10-year yield was down two basis points to 4.96%.Communication services, healthcare and consumer staples sectors topped gainers after midday. Industrials, technology and utilities led decliners.Dario Amodei, chief executive of AI chatbot Claude maker Anthropic, called on the industry Saturday to slow the pace of developing AI model capabilities. His three-step plan to ensure that safety measures keep pace with advances in AI model capabilities includes placing independent evaluators inside leading AI companies with "employee-like access."OpenAI CEO Sam Altman and Tesla (TSLA) and SpaceX (SPCX) CEO Elon Musk supported Amodei's call in posts on X.In company news, Corning (GLW) said Friday it entered into an equity distribution agreement to sell its common stock from time to time, with an aggregate offering price of up to $2 billion. Shares of Corning sank 13%, the worst performer on the S&P 500.

Dow JonesNasdaq CompositeS&P 500$GLW$SPCX$TSLA
Asia Markets

Exchange-Traded Funds Mixed as US Equities Fall After Midday

Broad-market exchange-traded funds IWM and IVV were mixed, with the latter in the red. Actively traded Invesco QQQ Trust (QQQ) fell 0.5%.US equity indexes fell after the 10-year benchmark government bond yield touched a 52-week high of 5.01% and crude oil prices extended gains amid the ongoing war in Iran.EnergyIShares US Energy ETF (IYE) lost 0.6%, and the State Street Energy Select Sector SPDR (XLE) fell 0.7%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) shed 1.2%, iShares US Technology ETF (IYW) declined 0.4% and iShares Expanded Tech Sector ETF (IGM) rose 0.6%.The State Street SPDR S&P Semiconductor (XSD) dropped 4.7%, while iShares Semiconductor (SOXX) decreased 4.8%.FinancialThe State Street Financial Select Sector SPDR (XLF) gained 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was 0.6% higher, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 0.7%.CommoditiesCrude oil gained 0.9%, and the United States Oil Fund (USO) was 0.8% higher. Natural gas increased 2.3%, and the United States Natural Gas Fund (UNG) advanced 2.2%.Gold on Comex declined 0.5%, and the State Street SPDR Gold Shares (GLD) fell 0.8%. Silver dropped 1.8%, and iShares Silver Trust (SLV) decreased 0.9%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) gained 1.5%. The Vanguard Consumer Staples ETF (VDC) was up 1.4%, and iShares Dow Jones US Consumer Goods (IYK) also rose 1.1%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was 0.2% higher. The VanEck Retail ETF (RTH) gained 0.8%, and the State Street SPDR S&P Retail (XRT) advanced 1.5%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) was 1.5% higher; iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were up about 1.4% each, while iShares Biotechnology ETF (IBB) was up 0.9%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) was 1.5% lower. The Vanguard Industrials Index Fund (VIS) decreased 1.5%, and iShares US Industrials (IYJ) fell 0.9%.CryptocurrencyIn midday activity, bitcoin (BTC-USD) increased 2.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) rose 2%, ProShares Ether ETF (EETH) shed 1.6%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was up 1.4%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH