Wall St set to open lower as oil, bond yields tick up

Brent crude prices climbed over 1% after five straight sessions of declines, though they remained pinned near a two-week low.

Yields on the two-year and 10-year US government bonds ticked higher, adding to market concerns that borrowing costs will remain elevated for longer.

"The market is in a limbo right now ... because bond yields and oil prices are up," said Sam Stovall, chief investment strategist at CFRA Research.

Optimism around AI continued to power Wall Street as the tech-heavy Nasdaq notched its first intraday record high since early June on Tuesday.

The latest gains have been aided by strong reception of Meta's AI assistant Muse, which analysts say could benefit tech infrastructure stocks, while also spurring AI disruption chatter in pockets of the market. The S&P 500 Financials sector logged its biggest daily drop since March on Tuesday.