US Stock Futures Decline as Middle East Tensions Push Oil Prices Higher
US stock futures declined on Tuesday, September 8, as tensions in the Middle East pushed oil prices higher and fueled inflation fears ahead of the US Federal Reserve's policy meeting. The S&P 500 was set to open 0.4% lower, while Dow Jones Industrial Average futures fell 0.7%. Rising concerns over a potential conflict between Saudi Arabia and Iranian-backed rebels in Yemen contributed to the drop.
The escalating situation has also led to increased demand for oil, with Brent crude nearing $100 a barrel. This rise in prices is particularly concerning as it may fuel inflation fears ahead of the Fed's upcoming meeting. The central bank will likely consider this data when deciding on interest rates, and traders are now pricing in a 60% chance of a quarter-percentage-point rate cut.
Despite the decline in stock futures, some companies showed promise. Roivant Sciences shares rallied 24% after reporting positive Phase 2 trial results for its mosliciguat treatment in patients with pulmonary hypertension associated with interstitial lung disease. Lockheed Martin also gained 0.7% following an upgrade to 'Buy' from 'Neutral' by UBS.