US stock futures are pointing lower this morning, with E-mini S&P 500 contracts down about 1.5% and Nasdaq-100 futures weaker by more than 2.7%, as investors juggle two big forces. First, the US 10 year Treasury yield sits near 4.5%, which means higher borrowing costs for households and businesses and keeps the focus on a possible Federal Reserve rate hike in September. Second, Europe's latest purchasing manager indexes show services activity shrinking while manufacturing only edges ahead, hinting at a soft global growth backdrop. The key question now is how rate sensitive sectors like technology, smaller US companies and real estate will cope if borrowing costs stay high while growth outside the US remains patchy.