Wall Street futures slip as oil surge puts markets on edge
Investors say inflation readings will carry more weight for the Federal Reserve's rate trajectory, given chair Kevin Warsh's focus on bringing prices down.
US stock index futures experienced a slight decline on Tuesday due to rising oil prices resulting from renewed conflicts in the Middle East. The Dow E-minis fell 0.75%, S&P 500 E-minis slipped 0.31%, and Nasdaq 100 E-minis eased 0.04%. The declines come after a volatile period where investors adjusted their expectations for interest rate hikes following statements from Federal Reserve governor Christopher Waller and a robust jobs report.
Upcoming inflation data, including the Consumer Price Index and Producer Price Index reports, will be closely watched as they could influence the Fed's policy decisions. The US-Iran war has continued to cast a shadow over equities, with ongoing tensions and the potential for wider conflict posing risks to the energy market and overall market stability.
Energy stocks saw gains in premarket trading, while risk-free US Treasury yields rose, making stocks less attractive to investors. Crypto stocks declined as Bitcoin dropped below the US$80,000 mark, while chipmakers benefited from optimism surrounding artificial intelligence.
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