Stocks showing losses are displayed at the entrance to the New York Stock Exchange (NYSE) in New York City, in New York, U.S., February 24, 2022.
Stocks showing losses are displayed at the entrance to the New York Stock Exchange (NYSE) in New York City, in New York, U.S., February 24, 2022. Reuters / CAITLIN OCHS

Wall Street was set to open lower on Tuesday with bank stocks declining further as the Russia-Ukraine crisis deepened, while a surge in oil prices boosted shares of energy companies.

Citigroup slipped 1.5% in premarket trading to lead losses among the big banks after U.S. 10-year Treasury yields slumped to five-week lows as investors snapped up safe-haven debt. [US/]

Oil jumped back above $100 a barrel as a Russian armoured column bore down on Ukraine's capital Kyiv on Tuesday. Russia's defense minister said Moscow will continue its military operation in Ukraine until it achieves its goals.

The three major U.S. indexes logged their second straight month of losses on Monday, with the S&P 500 down over 8% so far in 2022 - its steepest two-month decline since March 2020.

"The advancement of Russia towards the capital of Ukraine continues to weigh on market sentiment," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"We also have some macro news, but right now it's basically taking a backseat and people are just focusing on the economic dangers of the war."

Target Corp was a bright spot in premarket trading, with its shares rising 12% after the big-box retailer forecast 2022 sales and profit above analysts' expectations.

February reading on ISM manufacturing PMI data is due at 10:00 a.m. ET, followed by U.S. President Joe Biden's State of the Union speech later in the day.

Oil majors Exxon Mobil and Chevron Corp rose 1.1% and 1.4%, respectively. Chevron also raised its share buyback program and forecast for operating cash-flow through 2026. [O/R]

Defense stocks, including Lockheed Martin Corp, were mixed, after a sharp rally in the previous session. Shares of Meta Platforms dipped 1.0%, making them the biggest decliner among the mega-cap growth names.

At 07:26 a.m. ET, Dow e-minis were down 230 points, or 0.68%, S&P 500 e-minis were down 32 points, or 0.73%, and Nasdaq 100 e-minis were down 109 points, or 0.77%.

The CBOE volatility index, also known as Wall Street's fear gauge, was last trading at 32.29 after hitting its highest level since Feb. 24 in the previous session.

Zoom Video Communications Inc slipped 3.1% after it forecast downbeat full-year revenue and profit, signaling a hit from tough competition and lower sign-ups for its core Meetings platform.

Lucid Group Inc tumbled 12.9% after the luxury electric car maker revised down its production forecast for 2022 due to "extraordinary supply chain and logistics challenges".