US stocks-Wall St set to open lower as rising oil and yields deepen market gloom

Elsewhere, shares of Dave & Buster's tumbled over 13% premarket after second-quarter revenue missed expectations.

Waystar rose 12% after Reuters reported the healthcare software firm is exploring options, including a potential sale.

Major U.S. stock indexes were set to open lower on Tuesday as higher crude prices, elevated Treasury yields and an uncertain outlook for AI demand kept investors at bay.

At 08:32 a.m. ET, Dow E-minis were down 144 points, or 0.27%, S&P 500 E-minis fell 12 points, or 0.16%, and Nasdaq 100 E-minis lost 39 points, or 0.13%.

Several tech stocks sank premarket, with Alphabet and Microsoft down around 1% each. Chipmakers, which bore the brunt of Monday's selloff, were trading within a narrow range. Nvidia rose 0.7%.

The latest bout of anxiety was driven by calls from top AI companies to slow the development of the technology, citing safety concerns.

While there is little clarity so far on how such a slowdown would work, the declines have added to the gloom in markets at a time when above-target inflation and fears of higher borrowing costs have already clouded the backdrop for equities.

Meanwhile, the Federal Reserve is expected to raise interest rates, with traders pricing in a 92.5% chance of a hike on Wednesday.

The Middle East conflict has shown few signs of easing, keeping oil prices elevated and deepening concerns of a supply shock.

Brent crude futures rose 0.6% to $106.31, while U.S. West Texas Intermediate futures were trading at $102.59, also up 1.2%.