U.S. Stocks Stumble Amid Economic Uncertainty and Rising Yields

U.S. stock index futures dipped as investors reacted to reports of President-elect Trump's potential national emergency declaration and rising Treasury yields. Concerns over potential tariffs and mass deportations add to the market's volatile landscape, impacting equities and highlighting the Fed's upcoming monetary policy discussions.

U.S. stock index futures witnessed a decline as investors reacted to recent developments involving President-elect Donald Trump. The latest CNN report suggests Trump is considering a national economic emergency declaration, allowing him to initiate a new tariff program under the International Economic Emergency Powers Act.

These potential surcharges on U.S. trade partners have left investors wary about potential global trade wars and inflation. Adding to the challenges, Treasury yields have increased, further pressuring equity markets. The 10-year Treasury bond yield hit its highest in eight months, exacerbating concerns amid stretched equity valuations.

Focus now shifts to the upcoming ADP National Employment Report and jobless claims data, alongside Fed Governor Christopher Waller's comments. These factors could influence expectations ahead of the Fed's non-farm payroll numbers release and December meeting minutes, impacting monetary policy outlook discussions.

(With inputs from agencies.)