U.S. stock futures are slightly lower in premarket trading with Treasury yields continuing to surge and oil prices moving higher.

On Monday, Anthropic CEO Dario Amodei called for a slower pace on AI development, which negatively impacted stocks. Yields are moving higher ahead of the Fed meeting announcement tomorrow; the benchmark 10-year Treasury yield is above 5% and hit its highest level since July of 2007 overnight.

Oil prices are also rising today and are near $102 a barrel after Saudi Arabia shuttered a key pipeline that bypasses the Strait of Hormuz.

With little economic data and no earnings due today, investor focus turns to the Fed and its decision on rates due tomorrow afternoon. The probability of a 25-basis-point rate hike is above 90%, according to the CME FedWatch tool.

Snapshot

• Oil (/CL) – Oil futures are up 0.80% to $102.22 per barrel
• Gold (/GC) – Gold futures are down 0.66% to 4,323.30 per ounce
• Bitcoin (/BTC) – The cryptocurrency futures are down 2.84% to 76,905
• VIX (/VIX) – The CBOE Volatility Index is up 0.06% to 17.11
• U.S. Dollar ($DXY) – The dollar index is up 0.19% to 99.576

Big Premarket Movers

Advancers:

• Coherent Corp. (COHR) 1.90%
• Intel Corp. (INTC) 1.86%
• Flex Ltd. (FLEX) 1.75%
• Lumentum Holdings Inc. (LITE) 1.67%
• Lam Research Corp. (LRCX) 1.65%

Decliners:

• Coinbase Global Inc. (COIN) -4.41%
• Robinhood Markets Inc. (HOOD) -2.20%
• Axon Enterprise Inc. (AXON) -2.08%
• ServiceNow Inc. (NOW) -2.00%
• CrowdStrike Holdings Inc. (CRWD) -1.98%

Economic Data (ET)

• Tuesday: FOMC meeting begins
• 8:30 AM: Empire State Manufacturing Index
• 1:00 PM: 20-Year Bond Auction

Notable Earnings

• Premarket: FPS, VRA
• Postmarket: N/A
• Premarket Wednesday: TCOM
• Postmarket Wednesday: LEN

Upgrades/Downgrades

• Berenberg upgrades Eli Lilly (LLY) from Hold to Buy
• Wells Fargo upgrades Ulta Beauty (ULTA) from Underweight to Equal Weight
• Oppenheimer upgrades Etsy (ETSY) from Perform to Outperform
• JPMorgan upgrades Adient (ADNT) from Neutral to Overweight
• JPMorgan downgrades Aptiv (APTV) from Overweight to Neutral
• JPMorgan downgrades Lear (LEA) from Overweight to Neutral
• Raymond James downgrades Ascendis Pharma (ASND) from Strong Buy to Outperform

For this week's economic and earnings calendars, see Week Ahead: Fed Interest Rate Decision and Heavy Economic Data.

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