Futures Slide as Trade Tensions Mount Amid Inflation Risks
US stock futures declined on Monday as investors remained cautious due to elevated oil prices and rising inflation risks. The energy markets experienced further upward pressure after a weekend exchange of strikes between the US and Iran, which raised fears of additional price increases.
The market's concerns were compounded by intensifying trade tensions as Canada's retaliatory tariffs, ranging from 15% to 50%, on up to $27.6 billion worth of American goods are set to take effect on Tuesday.
Traders are increasingly pricing in a greater than 60% probability of a Federal Reserve (Fed) rate hike in September, following a stronger-than-expected August US labor report that showed nonfarm payrolls expanding by 162,000 while the unemployment rate remained steady.