U.S. stock futures pointed to a stronger opening on Tuesday, suggesting equities could rebound after the major indices ended the previous session mostly lower. Sentiment improved as crude oil prices extended their sharp decline, with U.S. crude futures falling more than 3% ahead of the opening bell, easing concerns over energy costs and helping push U.S. Treasury yields lower. The sell-off accelerated after the U.S. Treasury Department formally unveiled "Operation Economic Outcast," an unprecedented government-wide economic campaign targeting Iran and its enablers, imposing sanctions on nearly 60 entities, individuals and vessels, though investors appeared relieved that the Treasury did not immediately introduce secondary sanctions against other countries that continue to support trade with Iran. Falling oil prices have also contributed to a further decline in Treasury yields, providing another source of support for U.S. equities. Despite the positive indications from futures, trading activity could remain relatively subdued as investors prepare for several major events later in the week, including key U.S. inflation figures due alongside Nvidia's quarterly earnings and the Jackson Hole economic symposium, where Federal Reserve Chair Kevin Warsh is scheduled to deliver keynote remarks on Friday.
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Walmart Inc.Crude oil decline and Treasury yield drop reflect lower inflation expectations, but the article notes yields fell, which is negative for the yield itself.
