Wall Street heads for a quiet Tuesday open: futures dip slightly, 10-year yield near 5.25%, oil above $98

U.S. indexes were headed for a quiet open on Tuesday, with Dow futures edging lower and Treasury yields near multi-year highs, as investors also digested the news that OpenAI has scrapped the launch of its newest artificial intelligence model.

As Barron’s reports, U.S. indexes were headed for a quiet open on Tuesday, while high oil prices and bond yields continue to weigh on investor sentiment. Investors are also processing the news that OpenAI has scrapped the launch of its newest AI model.

Dow Jones Industrial Average futures fell 55 points, or 0.1%. S&P 500 futures were nearly flat, while Nasdaq 100 futures gained 0.1%, according to Tuesday morning data.

The market remains focused on Treasury yields, which touched multi-year highs on Monday amid signs the U.S.–Iran conflict will continue, pushing up oil prices and inflationary pressures in global markets. The 10-year note yield stood at 5.245% early Tuesday, having pulled back slightly from Monday’s high of 5.274% — the highest since June 2007, according to Tradeweb. Brent crude, the international benchmark, rose 0.8% to $98.58 a barrel, while WTI gained 0.9% to $93.41.

“Investors will scrutinize Wednesday’s August U.S. personal consumption expenditure data, a key inflation measure, for signs of whether price pressures are spreading beyond energy,” wrote Mark Haefele, chief investment officer at UBS Global Wealth, in a research note quoted by Barron’s. “Contained core inflation, particularly if officials push back expectations for rapid tightening, could help calm bond markets,” he added.

Investors will also be watching any fallout from OpenAI’s decision to abandon the launch of the next-generation new AI model over safety concerns. Companies tied to OpenAI, such as cloud service providers Oracle and CoreWeave, were climbing slightly in Tuesday’s premarket trading.