U.S. stock index futures fell Tuesday as higher rates continue to pressure market sentiment. Dow Jones Industrial Average futures dropped 274 points, or 0.8%. S&P 500 futures also slid 0.8%, and Nasdaq-100 futures pulled back by nearly 1%. U.S. markets were closed Monday due to the Presidents Day holiday. Home Depot shares fell 3.8% in the premarket after the home improvement retailer posted weaker-than-expected revenue for the fourth quarter. The company also issued a muted outlook. Walmart, another Dow component, also fell more than 2% after posting its latest quarterly results. The benchmark 10-year Treasury yield climbed to 3.87%, while the 2-year rate advanced to 4.669%. Those moves build on last week’s gains for yields, which rose as traders grappled with hotter-than-expected inflation data. Traders are worried that stubborn inflation will lead the Federal Reserve to keep rates higher for longer — which could tip the economy into a recession. Those concerns kept equities in check last week. The Dow fell 0.1%, marking its third straight weekly decline. The S&P 500 slid for a second consecutive week, losing 0.3%. The tech-heavy Nasdaq Composite bucked the trend, rising 0.6%. “We believe a recession is virtually inevitable, but we do not believe it will begin until sometime between the beginning and the middle of 2024,” Doug Peta, chief U.S. investment strategist at BCA Research, said in a note. “Such a delay would give equities a window to rally.” The Fed on Wednesday is scheduled to release the minutes from its meeting of Jan. 31 and Feb. 1. The central bank hiked rates by 25 basis points after that meeting. Asia-Pacific markets were mixed on Tuesday as investors await regional private surveys for factory activity. In Australia, the S&P/ASX 200 closed 0.21% lower at 7,336.3 as investors digest the nation’s Judo Bank composite purchasing managers’ index, which climbed to 49.2, below the 50-mark that separates growth and contraction. The PMI index encompasses services and manufacturing, and is seen as a reliable gauge of economic health. The Reserve Bank of Australia released minutes from its February policy meeting, which reiterated comments from governor Philip Lowe that more interest rate hikes will be needed. In Hong Kong, the Hang Seng index led losses in the region as it fell 1.5% lower, and the Hang Seng Tech index slid 3.08%. In Japan, the Nikkei 225 fell 0.21% to end the day at 27,473.1 and the Topix finshed marginally higher at 1,997.46, with Japan’s PMI index coming in lower at 47.4. down from 48.9 in January. South Korea’s Kospi also rose 0.16% to close at 2458.96, while the Kosdaq ended 0.57% higher at 793.42. In mainland China, the Shenzhen Component closed 0.12% higher at 11,968.6, and the Shanghai Composite also was up 0.41% to end the day at 3,303.14. Brent oil fell on Tuesday as concern about a global economic slowdown that would reduce demand prompted investors to take profits on the previous day’s gains, outweighing supply curbs. The focus in the wider financial market is firmly on the release on Wednesday of the minutes of the U.S. Federal Reserve’s latest meeting, after recent data raised the risk of interest rates remaining higher for longer. Global benchmark Brent crude was down 12 cents, or 0.1%, at $83.95 a barrel. U.S. West Texas Intermediate crude for March, which expires on Tuesday, was up $1.02 at $77.36. Gold dipped on Tuesday as investors looked ahead to U.S. economic data that could influence the Federal Reserve’s rate-hike strategy. Spot gold was down 0.3% at $1,834.70 per ounce. U.S. gold futures also dipped 0.3% to $1,843.80.