Global Equities Plummet as Oil Prices Soar Amid Saudi Pipeline Disruptions
US equity futures tumbled on Monday, following a difficult week for global markets. The S&P 500 lost 0.8%, the Nasdaq fell 0.7%, and the Dow suffered its sharpest weekly decline since March.
The retreat in Asian markets provided an early look at this week's risk appetite. Japan's Nikkei 225 dropped 1%, while South Korea's Kospi lost 2.1% as technology and AI-linked shares retreated.
Higher oil prices are particularly uncomfortable for energy-importing economies, raising costs and draining money from consumers and businesses.
Brent crude climbed more than 2% to around $107.50 a barrel, while WTI rose above $102, following the shutdown of Saudi Arabia's East-West pipeline after a drone attack.
Markets now assign an 86% to 87% probability to a quarter-point Fed rate increase this week, with Goldman Sachs abandoning its previous call for no change and expecting the Fed to raise rates.