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U.S. stocks were sliding in Tuesday’s premarket, indicating further September losses with just three days left in one of the historically weakest months of the year.

• Nasdaq futures fell 250 points or 1.7%. S&P futures were down nearly 1%. Dow futures dropped 0.5%. The Nasdaq and S&P 500 fell Monday. The Dow Jones Industrial Average rose modestly. Monday’s divergence The rise was due to rising Treasury yields.
• The 10-year Treasury yield, increasing on economic optimism and inflation fears, remained above 1.5% on Tuesday, back to levels not seen since June. High valuation tech stocks could be put under pressure by high bond yields.
• Energy stocks, however, were higher in premarket trading as U.S. oil prices rose about 1% to around $76 per barrel, nearly a three-year peak. U.S. oil prices rose 77% in this year’s market as Covid-disrupted businesses continued to recover.

Federal Reserve Chairman Jerome Powell, in remarks prepared for Tuesday’s Senate Banking Committee hearing, cautioned lawmakers that the causes of the recent rise in inflation may last longer than anticipated. Although economic growth had “continued” to strengthen, it was met by higher prices caused by supply chain bottlenecks. This testimony is required by Congress to be given to Powell regarding the Fed’s economic response in the wake of the Covid pandemic. On Thursday, he will appear before the House Financial Services Committee.

Pfizer announced Tuesday that it asked the FDA to clear its Covid vaccine for kids 5 to 11 for emergency use. Last week, U.S.-based Pfizer and its German partner BioNTech said a smaller two-dose regimen was safe and generated a “robust” immune response in a clinical trial in children of the age group. According to the American Academy of Pediatrics, infections in children under age 5 have increased dramatically. They reached their peak in September.

Senate Republicans blocked a House-passed bill that would prevent a federal government shutdown and a potential default on U.S. debt. For a government shutdown to be avoided, lawmakers need to pass an appropriate bill. Additionally, they will have to increase or suspend the debt ceiling within the coming weeks in order to stop a default. As part of the up to $3.5 Trillion budget reconciliation bill, Democrats could have to suspend their debt limit.

Shares of Ford, after closing up 2.7% on Monday, were adding another 3.5% in the premarket. The U.S. automaker and South Korea-based battery supplier SK Innovation announced plans to invest more than $11.4 billion in new U.S. facilities that will create nearly 11,000 jobs to produce electric vehicles and batteries. According to Jim Farley, Ford doesn’t expect to incur any further debt in order to finance the plan. The company’s profits will fund the Ford turnaround plan, he said.

— Reuters contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.