Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street set to open lower as bond yields remain high

Traders work on the floor of the NYSE, June 6, 2022.

Source: NYSE

U.S. equity futures fell on Tuesday, with high bond yields once again playing the trouble. Sentiment also took a hit as Target shares fell more than 8% pre-market following a profit warning.

  • The Dow Jones Industrial Average gave up nearly all of Monday’s more than 300-point gain at the close as the benchmark 10-year Treasury yield rose above 3% to its highest level in nearly a month.
  • The S&P 500 and Nasdaq were able to hold on to more of their Monday advances than the Dow, ending up 0.3% and 0.4% respectively.
  • Despite strong gains in the week leading up to Memorial Day, last week’s losses have kept the Dow Jones and S&P 500 firmly in corrections and the Nasdaq in a bear market, based on declines from their previous historical highs.

2. Target shares fall after retailer warns of profits

A person walks into a Target store in Washington, DC on May 18, 2022.

Stefani Reynolds | AFP | Getty Images

Target warned Tuesday that profits will take a short-term hit as the retailer tags unwanted items, cancels orders and takes aggressive action to shed extra inventory. Target expects its fiscal second quarter operating margin rate to be approximately 2%. That’s lower than the outlook he gave less than three weeks ago when he announced a bigger shortfall in the first fiscal quarter, which sent the stock down about 25% during its worst. single-day performance on Wall Street since 1987.

3. Kohl’s jumps after entering sales talks with owner of Vitamin Shoppe

The Kohl’s logo is displayed outside a Kohl’s store on January 24, 2022 in San Rafael, California.

Justin Sullivan | Getty Images

Kohl’s shares jumped nearly 10% in Tuesday’s premarket, the morning after the department store chain announced it had entered into exclusive sales negotiations with the retail company behind The Vitamin Shoppe and Pet Supplies. More. Franchise Group is offering to buy Kohl’s for $60 a share, a premium of more than 40% at Monday’s close. Franchise Group is working with Oak Street Real Estate Capital to fund the transaction primarily through real estate, according to a person familiar with the matter.

4. Yellen to kick off two days of testimony on Capitol Hill on inflation

Janet Yellen, US Treasury Secretary, delivers the “Tommaso Padoa Schioppa” lecture at the Brussels Economic Forum in Brussels, Belgium, Tuesday, May 17, 2022.

Valeria Mongelli | Bloomberg | Getty Images

Ahead of Friday’s May consumer price reading, inflation takes center stage on Capitol Hill this week as Treasury Secretary Janet Yellen testifies before a Senate panel on Tuesday and a House panel on Wednesday. Yellen, a former Federal Reserve chair, faces tough questions about how the Biden administration handled the economy after it was wrong to say inflation was transitory. Forty years of high inflation has pushed the national average for a gallon of gas to another all-time high, just 8 cents below $5, according to AAA.

5. Senators Introduce Bipartisan Bill to Regulate Crypto

United States Capitol building in Washington, DC

Liu Jie | Xinhua News Agency | Getty Images

The senses. Kirsten Gillibrand, DN.Y., and Cynthia Lummis, R-Wyo., on Tuesday unveiled a bipartisan bill to create a regulatory framework around crypto. The Lummis-Gillibrand bill, the fruit of months of collaboration with Capitol Hill, amounts to classifying the vast majority of digital assets as commodities. The Responsible Financial Innovation Act would empower the Commodity Futures Trading Commission to regulate most existing digital assets. Lummis and Gillibrand want to work to develop their respective states into blockchain and crypto havens.

—CNBC Tanaya Macheel, Melissa Repko, Lawrence Thomas and Thomas Frank as well as Reuters contributed to this report.

Register now for the CNBC Investing Club to follow Jim Cramer’s every stock market move. Follow the evolution of the market like a pro on CNBC Pro.