Stock Futures Slip Ahead of Tech Earnings

Microsoft, Google-parent Alphabet, GOOG 3.04% General Motors, Visa and Mondelez International MDLZ 1.11% are set to report earnings after markets close. 

United Parcel Service rose 2.3% ahead of the market open after reporting a rise in quarterly earnings. Shares of PepsiCo added 0.4% premarket after the beverage giant topped profit estimates for the recent quarter. 3M rose 0.9% after reporting better-than-expected first-quarter sales.

General Electric fell more than 3% after warning that supply chain disruptions would pressure its business this year. Raytheon fell 0.9% after reporting sales that missed analysts’ forecasts.

Stocks on Wall Street closed higher on Monday, led by tech stocks, after Twitter agreed to be taken private by Elon Musk. The Nasdaq Composite Index rose 1.3% while the S&P 500 added 0.6%.

Fears about a resurgence of Covid-19 cases in China, and strict lockdowns imposed to fight the outbreak, have heightened investors’ concerns about the global economy and prompted choppy trading in recent sessions. Soaring inflation is weighing on companies and consumers while the Federal Reserve’s indications that it will quickly tighten monetary policy threatens to drag on growth. 

“We had a beautiful scenario over the last 18 months: Growth was accelerating and bond yields were falling—the perfect combination for risk assets,” said Hani Redha, a portfolio manager at PineBridge Investments. “Now we have the complete opposite.”

The yield on the 10-Year U.S. Treasury note declined to 2.796% from 2.825% on Monday. The yield on the benchmark note remains close to its highest level since 2018 as investors have sold bonds in anticipation of higher interest rates. Bond yields rise as prices fall. 

Assets considered havens in times of trouble, such as Treasury bonds, are being pressured by inflation and expectations for tighter central-bank policy along with stocks, complicating matters for investors seeking shelter during recent volatility. Gold, another haven, edged up 0.4% on Tuesday but prices remain close to its lowest level since February.

“Inflation really is enemy number one for financial markets. It is painful for risk assets and painful for your safety assets,” Mr. Redha said. “There are very few places to hide.”

Brent crude futures edged up 0.3% to $102.55 a barrel. The international oil benchmark fell below the $100 a barrel level Monday before rebounding. U.S. benchmark oil prices, known as West Texas Intermediate, rose 0.2% to $98.78 a barrel Tuesday.

Investors were awaiting data on durable goods, home sales and consumer confidence. Orders for durable goods—consumer products designed to last for more than three years—are expected to have rebounded in March following a weak February. 

Overseas, the Stoxx Europe 600 rose 0.8%. 

UBS Group rose 2.2% after reporting stronger-than-expected quarterly earnings. HSBC shares in London fell almost 3% after reporting a drop in quarterly profits. 

In mainland China, the Shanghai Composite Index fell 1.4%, lower for a second consecutive day, as investors continued to worry about the threat of new Covid-19 lockdowns. 

The People’s Bank of China vowed to step up support for the economy Tuesday in an attempt to calm the jitters, but the move only had a temporary effect on local markets.

“I don’t see any catalyst for price appreciation until we get some tangible, meaningful moves on the policy front,” said John Woods, Asia Pacific chief investment officer at Credit Suisse, referring to Chinese stocks. 

Elsewhere in Asia, Tokyo’s Nikkei 225 index rose 0.4%, while South Korea’s Kospi edged up 0.4%. Hong Kong’s Hang Seng Index rose 0.3%.

—Rebecca Feng contributed to this article.

Write to Will Horner at william.horner@wsj.com