U.S. stock futures slipped as rising oil prices and bond yields weighed on investor sentiment ahead of key producer inflation data and Oracle earnings. Meanwhile, fighting flared in the Middle East following an American strike on Iranian rocket launchers, pushing Brent crude above $103 a barrel.
Financial markets faced fresh pressure on Thursday as energy costs climbed and bond yields pushed higher across the curve. The 10-year T-note yield rose four basis points to 4.88%, reflecting mounting anxiety over inflation as crude oil extended its recent advance. September S&P 500 E-Mini futures dipped 0.15%, while September Nasdaq 100 E-Mini futures declined 0.66% in pre-market trading.
The downturn followed a negative session on Wall Street where major indexes ended in the red. Investors watched a wave of corporate updates, including significant drops for companies such as Casey’s General Stores and Comcast.
Middle East Conflict Escalation and Crude Oil Milestones
Geopolitical tensions in the Middle East intensified after escalating attacks between the United States and Iran threatened to prolong disruptions to global energy flows. Brent crude rose above $103 a barrel, while WTI crude climbed above $99 a barrel.
Inflation Data and Central Bank Rate Expectations
Market participants turned their attention toward upcoming macroeconomic reports to gauge the Federal Reserve’s next policy steps. Today, investors will closely watch the U.S. Producer Price Index for August, which is set to be released in a couple of hours, offering a glimpse into price pressures from the wholesale side of the economy.
Meanwhile, U.S. stock-index futures declined on Sunday, as investors ponder the likelihood of a fresh interest-rate hike following comments from Warsh at Jackson Hole, and as new fighting between the U.S. and Iran threatens to reignite the conflict.
Corporate Earnings and Sector Volatility Ahead
Corporate reporting remained a critical barometer for investor sentiment, with debt-loaded AI hyperscaler Oracle scheduled to release earnings. Nasdaq 100 futures underperformed as chip and AI infrastructure stocks fell in pre-market trading.