US Stock Futures Fall on Rising Oil Prices and Inflation Concerns
US stock futures declined on Monday after military clashes between the US and Iran pushed up oil prices, raising concerns about inflation. The losses could set the tone for September, which is typically a weak month for equities, and may influence the Federal Reserve's meeting next month.
The chances of a rate hike at the September meeting increased to nearly 60% according to the CME FedWatch tool, up from 41.4% a week ago. This is after Fed Chair Kevin Warsh said policymakers may need to increase interest rates if inflation doesn't ease to the central bank's 2% target.
Warsh's comments, made at the Fed's Jackson Hole symposium on Friday, were seen as more hawkish than expected by investors. The ambiguity surrounding inflation has raised the stakes for the upcoming US employment report due on September 4.