U.S. stock index futures pointed to a sharply lower Wall Street open on Tuesday, as global stocks declined on the back of a sharp fall in bond prices.
Dow Jones Industrial Average futures nearly halved losses, after earlier falling about 140 points, as benchmark 10-year Treasury bonds yielded over 2.3 percent for the first time in five months.
"The selling pressure is probably predicated on the rise in interest rates," said Robert Pavlik, chief market strategist at Boston Private Wealth, citing ongoing concerns about Greece and U.S. equity valuations as other negative factors.
Greece emptied an emergency IMF holding account to repay 750 million euros ($839 million) due to the international lender, a Greek central bank official said in a Reuters report. The move avoided default but underscored the dire state of the country's finances.
Little major economic data is due on Tuesday, with the Job Openings and Labor Turnover Survey in the morning and the federal budget for April, which is seen showing an increased surplus, expected at 2:00 p.m. ET.
U.S. small business confidence increased in April with owners in the energy field surprisingly bullish about capital expenditure and hiring plans, further supporting views that economic growth is rebounding after a dismal first quarter, Reuters said. The National Federation of Independent Business said its Small Business Optimism Index rose 1.7 points to 96.9 last month.