U.S. stock futures were lower early Wednesday morning as Treasury yields continued to climb. Investors worried a new tax bill could worsen the U.S. government's deficit following a Moody’s downgrade of the country's credit rating last week.

The dollar edged lower as investors remained cautious amid concerns about the deteriorating U.S. fiscal position and uncertainty over U.S. tariffs. Moody's cut its rating on U.S. sovereign debt to Aa1 from Aaa last week,