New York, Sep 8: US stock futures came under pressure on Tuesday as investors returned from the Labor Day holiday to a market increasingly worried about rising crude oil prices and renewed tensions in the Middle East.
Dow Jones futures fell around 0.9%, while S&P 500 and Nasdaq futures also traded lower. The weakness came as Brent crude moved close to the $100-a-barrel mark, raising concerns that higher energy costs could add to inflationary pressures and make the Federal Reserve’s interest-rate decisions more difficult.
Oil prices have climbed sharply as the conflict involving the US and Iran continues to disrupt energy markets and shipping routes. Concerns over activity around the Strait of Hormuz and attacks on energy infrastructure in the region have increased fears of further supply disruptions. Brent crude was trading near $99 a barrel, while US West Texas Intermediate crude was also higher.
For businesses and consumers, a prolonged rise in crude prices could mean higher transportation, manufacturing and logistics costs. It could also put pressure on household spending if fuel and other energy-related expenses increase.
Investors are now closely watching this week’s US inflation data. The Producer Price Index is due on Thursday, followed by the Consumer Price Index on Friday. The figures could provide important clues about the direction of interest rates and the Federal Reserve’s policy outlook.
The rise in oil prices is also adding to concerns in the bond market, with higher Treasury yields making investors more cautious about equities. Asian markets also came under pressure on Tuesday as investors assessed the combined impact of geopolitical tensions, higher energy costs and inflation risks.
Despite the broader market weakness, some technology stocks remained in focus. Investors continued to watch major chip and technology companies, including Nvidia, as demand for artificial intelligence infrastructure remains an important driver for the sector.
Oracle also remained on investors’ radar ahead of its upcoming quarterly earnings, with attention centred on its cloud business and growing demand for computing capacity linked to artificial intelligence.
Market sentiment is likely to remain sensitive to developments in the Middle East, movements in crude prices and incoming US economic data. For investors, the combination of geopolitical uncertainty and inflation risks could keep markets volatile in the near term.
