Finance

Major U.S. equity indexes faced downward pressure as rising energy costs and renewed inflation fears dampened investor sentiment. Following a sharp selloff where the Nasdaq Composite fell 1.6% and the S&P 500 dropped 0.8%, futures tied to the Dow and other major benchmarks continued to slip as markets braced for upcoming economic data.

U.S. Treasury yields advanced as investors increased bets on a potential interest rate hike at the upcoming July FOMC meeting. The yield on the 10-year note climbed to roughly 4.63%, a two-month peak, driven by concerns that soaring energy prices will force the central bank to maintain restrictive policy longer than previously anticipated.

Investors are closely monitoring the release of June Consumer Price Index data, which is expected to show headline inflation around 3.9% year-over-year. The data coincides with the start of the second-quarter earnings season, with heavyweights like JPMorgan Chase, Goldman Sachs, and Bank of America scheduled to report results this morning.