Oil Prices Surge Past $100 as US Stock Futures Plunge
US stock futures took a hit on Tuesday as oil prices surged past $100 a barrel, reviving concerns about inflation before crucial price data releases this week.
The Dow futures dropped by over 400 points or 0.7%, while S&P 500 contracts lost 0.2% and Nasdaq 100 futures slipped around 0.1% in early trading.
The sharp decline was largely due to the surge in oil prices, with Brent climbing above $99 a barrel and WTI reaching $94 after Houthi attacks damaged Saudi energy infrastructure.
Deutsche Bank strategist Jim Reid noted that the latest Middle East escalation has added to the oil rally and broader market unease, with the 10-year Treasury yield moving towards 4.81%.
The upcoming releases of the producer price index on Thursday and consumer price index on Friday will be closely watched for signs of inflation, which could impact interest rates at the Federal Reserve's September meeting.