U.S. stock futures declined on Wednesday as surging oil prices drove Treasury yields higher, erasing the gains that had pushed equities to record highs the previous day. The market is now focused on whether the renewed pressure on bond yields will continue to weigh on stocks ahead of the release of Federal Reserve meeting minutes.

The Dow Jones Industrial Average futures contract dropped 201 points, a 0.4% decline. S&P 500 futures fell 0.2%, and Nasdaq futures retreated 0.4%. This pullback followed Tuesday's session, when chipmakers led the S&P 500 above 7,800 for the first time and the Nasdaq composite closed at a record level after bond yields had eased.

The shift in sentiment was driven by energy costs. International Brent crude futures traded near $102 a barrel, up approximately 1% on the session, while U.S. crude prices moved back toward $90 per barrel. According to The Wall Street Journal, Houthi militant strikes targeting Saudi Arabia have sustained elevated tensions across the Middle East, contributing to the price increase. These higher oil prices pulled the yield on the 10-year Treasury note up by about 6 basis points to 5.326%. The 30-year bond yield added nearly 7 basis points to reach 5.706%.

Investors are also waiting for clues from the Federal Reserve. The minutes from the September meeting are scheduled for release at 2 p.m. ET Wednesday. Those documents could offer insight into where policymakers stand on inflation and whether further rate increases are likely. At that September meeting, the Fed raised interest rates for the first time since 2023.

Global markets reflected similar caution. In Europe, indexes fell across the board, with the pan-European Stoxx 600 losing 0.8%. France's CAC 40 was down 1%, Germany's DAX slid 1.3%, and London's FTSE 100 gave up 0.7%. Italy's FTSE MIB was among the region's worst performers, dropping 1.9%. The Wall Street Journal noted that while yields on French government bonds moved higher, they remained below last week's levels, when concerns about France's fiscal position had stirred comparisons to the eurozone debt crisis.

In Asia, Japan's Nikkei 225 shed 0.92%. South Korea's Kospi dropped nearly 2%, and the smaller Kosdaq index fell 2.34%. Australia's S&P/ASX 200 finished little changed. Trading in mainland China was suspended for the Golden Week holiday.