Oil Rises to Multi-Week Highs as US Stocks Remain Mixed Ahead of Inflation Data

US stocks are pointing to a mixed open after the Labour Day long weekend as investors return to fresh concerns over oil prices and inflation risks ahead of the FOMC rate decision next week.

The market is currently pricing in a 60% chance of a Fed rate hike next week, with Treasury yields remaining relatively stable. The 10-year Treasury yield is at 4.76%, while the 2-year Treasury yield has dipped to 4.36%.

Oil prices have surged to multi-week highs after Iran-backed Houthis attacked Saudi energy facilities and Tehran threatened economic warfare. Brent rose to almost $100 a barrel, its highest level since July 24, while WTI almost reached $95 a barrel.